Canadian cannabis producer Canopy Growth (CGC) on Thursday launched a line of hemp-derived CBD gummies, soft-gels and oil drops under the Martha Stewart name. Canopy Growth stock edged higher while other marijuana stocks were mixed as the broader market reversed lower.
The launch is the result of a partnership Canopy struck last year with the better-living guru, before the weed giant began scaling back operations, including in the U.S., in an effort to become profitable. Canopy will also launch the products amid broader uncertainty about selling CBD in the U.S.
The product line, Martha Stewart CBD, is made in the U.S. with hemp-derived CBD isolate. CBD isolate is a crystalline powder seen as a purer form of CBD, which doesn't have the psychoactive component that pot does but is known for its calming effects. The products will be available on Shop Canopy, a website launched in July to sell CBD products in the U.S.
Products for pets will appear under the Martha Stewart CBD name later in the year. The products available now, for human consumption, come in a variety of citrus and berry flavors.
Canopy Growth Stock, Marijuana Stocks
Canopy Growth stock rose 0.4% to 16.42 in the stock market today. The stock has a 33 Composite Rating and a 20 EPS Rating.
Among other marijuana stocks, Cronos Group (CRON) edged up 0.2%. Tilray (TLRY) dipped 0.35%. Aphria (APHA) rose 2.9%. Aurora Cannabis (ACB) fell 3%.
That collaboration with Stewart, part of a string of agreements struck with celebrities, was made when Bruce Linton still led the company. The collaboration brought Stewart on as an advisor to Canopy.
Linton was ousted last year as Canopy's board tried to stem losses at the company. Earlier in the week, Aurora and Cronos both appointed new CEOs. Both marijuana stocks have fallen this year.
CBD over the past two years has become a popular addition to lattes and topical creams, as people sought out what are believed to be a wide range of therapeutic effects from the compound. But concerns have also grown this year of an oversupply of hemp, and sinking prices as a result.
Canopy Growth earlier in the year said it would stop hemp farming operations in Springfield, N.Y., "due to an abundance of hemp produced in the 2019 growing season." But it said it would still use the hemp produced to make CBD products in the U.S.
Companies have also said that U.S. retailers have been uneasy about stocking CBD products, as they awaited more concrete guidance from the FDA and tried to avoid a regulatory crackdown on selling the substance.
Cronos earlier in the year said it would pause distribution of its hemp-derived Peace+ CBD tinctures in the U.S. Tilray took impairments for a deal it struck with a large marketing and entertainment company that would have sold CBD products in stores.