Canadian pot producer Canopy Growth (CGC) has launched a sparkling water with hemp-derived CBD in the U.S., adding to its product offerings in the nation. Canopy Growth stock rose while other marijuana stocks were mixed.
The beverage line, called Quatreau, will be sold on Canopy’s U.S. website shopcanopy.com, which also sells CBD gummies and pet products from better-living guru Martha Stewart, along with CBD products from Biosteel and other brands.
Cannabis beverage still remain a small part of the legal market compared to more popular items, like buds and vapes. Canopy Growth, which has placed a bigger bet on cannabis drinks than some of its rival marijuana producers, launched CBD beverages in Canada last year. Canopy also sells THC beverages, which contain the ingredient that gets the user high, in Canada.
Quatreau will be available in four flavors in the U.S. Each can contains 20 milligrams of CBD, a relaxing agent that doesn’t yield a high. Twelve-packs on shopcanopy.com were selling for around $48.
Canopy said the Quatreau launch in the U.S. coincided with the astrological event known as the Age of Aquarius. The company said it partnered with celebrity astrologist Susan Miller, of Astrology Zone, to help promote the drinks.
“Astrology has made a major pop culture comeback as people turn to the stars for guidance during what has been an unsettling, uncertain, and stressful time for many,” Tara Rozalowsky, Canopy’s vice president of beverages, said in a statement.
Some Canopy rivals also own companies that make hemp or CBD products in the U.S. Cronos Group (CRON) owns the CBD brand Lord Jones. Tilray (TLRY) owns Manitoba Harvest, which sells hemp granola and other foods.
But the coronavirus pandemic’s restrictions on retailers have, in turn, restricted sales. Canada’s industry is also waiting for clearer regulations from the FDA.
Tilray, when it reported quarterly results last month, also said that its hemp sales took a hit after Costco (COST), one of its large customers, began moving to private-label products.
Canopy Growth Stock, Marijuana Stocks
Canopy Growth stock rose 1.5% in the stock market today. CGC stock has a 52 Composite Rating. Its EPS is 1, the weakest possible, as it continues to lose money.
Among other marijuana stocks, Aphria (APHA) and Tilray, which plan to merge, added 1% and 1.3%, respectively.
Cronos stock fell 3.7%, and Aurora Cannabis (ACB) dipped 0.1%, with both giving up earlier gains.
Marijuana stocks earlier this year rallied on greater hopes of U.S. federal legalization. Virginia’s legislature over the weekend voted to legalize recreational cannabis, making it the 16th U.S. state to legalize recreational cannabis. However, sales don’t begin until 2024.
But Canadian entry into the U.S. market for THC products is not guaranteed, and would require significant infrastructure investments. Canopy, however, has a deal in place to acquire U.S. multistate cannabis company Acreage Holdings, which sells THC products, once U.S. federal law allows cannabis.
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