Canadian weed giant Canopy Growth (CGC) said Thursday that it plans to bring its THC-infused beverages to the U.S. next summer via Acreage Holdings, a U.S. pot company it plans to eventually buy. Marijuana stocks were mixed Thursday morning.
Canopy said that Acreage expects to launch those beverages first in Illinois and California, where recreational cannabis is legal. Acreage will sell the drinks in its own dispensaries. And it will "access existing distribution channels through strategic corporate relationships."
"We are already working on our beverage production capabilities, and look forward to tapping the wealth of experience and research Canopy can offer following its successful entry in the category last year," Bill Van Faasen, Acreage's interim CEO, said in a statement.
Additionally, the companies said they planned to make the drink "sessionable," with serving sizes similar to existing alcoholic beverages. Session beers tend to have low-enough alcohol to allow for longer, easier consumption.
Canopy Growth Stock, Marijuana Stocks
Meanwhile, Canopy Growth stock fell 0.8% in the stock market today. As with other marijuana stocks, Canopy Growth stock has a weak 21 Composite Rating. Its EPS Rating is 20.
Among other marijuana stocks, Cronos Group (CRON) edged down 0.2%. Tilray (TLRY) rose 1.4%. Aurora Cannabis (ACB) advanced 0.4%. Aphria (APHA) lost 0.7%.
The rollout of Canopy's own beverages hasn't always gone smoothly. In January, Canopy said it would postpone the launch of its cannabis beverages, saying "the scaling process is not complete." That announcement came weeks after the company said it expected the products to be available earlier in the month.
And other Canadian pot companies have hit roadblocks in their efforts to bring CBD products to the U.S. They've said some retailers were wary of selling CBD. They await clearer guidance from the FDA and try to avoid regulatory crackdowns.
Bigger Bet On Drinks
Also, Marijuana stock analysts have generally seen the cannabis drinks market being smaller than other forms of intake, like vaping or dry buds. Consumers have been turned off by the taste.
But unlike some rivals, Canopy has placed a bigger bet on beverages. Especially since it received a $4 billion investment from beer and wine seller Constellation Brands (STZ) in 2018.
The plan to put Canopy's beverages into stores follows Canopy's efforts over the summer to revise its deal to purchase Acreage. It sell the beverages under names like Houndstooth & Soda and Bakerstreet & Ginger. The reworked deal followed a long slide in marijuana stocks. That slump resulted in the departure of Acreage's old CEO, Kevin Murphy, and allowed some flexibility to lower the value of the transaction.
Canopy last year agreed to buy Acreage Holdings for $3.4 billion once pot becomes federally legal in the U.S.
Constellation Brands, which reported earnings Thursday, fell 2.6%.
