Canopy is by far the clear winner in Cannabis beverages When it comes to the Canadian cannabis beverage market, we believe that Canopy Growth Corporation (WEED.TO) (CGC) is the clear leader and consider HEXO Corporation (HEXO.TO) (HEXO) to be an up and comer.
Through a series of acquisitions and an organic growth strategy, Canopy Growth has been selling cannabis-containing products for several years. So far this year, the company has recorded strong sales from beverages in Canada and has plans to expand the beverage business in the US with BioSteel.
In a short period of time, Canopy Growth has reached a major milestone and has already sold more than 1.5 million drinks since the launch of its products in March. These numbers are impressive, and we expect to see continued growth on a quarter-over-quarter basis. Canopy Growth has formed strategic distribution agreements with established brands and celebrities like Martha Stewart, who promotes and sells CBD oils and wellness products for it.
Last year, Canopy Growth acquired a majority stake in BioSteel Sports Nutrition, a manufacturer of nutritional products for athletes. The investment in the beverage brand has already proved to be a strategic investment and we are bullish on the growth prospects that are associated with it. Canopy recently announced a cooperation between BioSteel and two large beverage suppliers (Manhattan Beer and Reyes Beer Division) that will deliver BioSteel drinks in New York, California, Florida and other larger markets in the US.
This relationship is expected to be a substantial growth driver for Canopy Growth on a going forward basis and are favorable on how this aspect of the story has advanced so quickly. The Canadian cannabis producer is backed by one of the largest alcohol companies in the world and we expect the relationship to play an important role in the continued growth of the cannabis beverage business.