Canopy Growth Corporation (WEED.TO) (CGC) is a leading global cannabis company that has been executing on a series of growth initiatives that are focused around enhancing brand awareness.
One of the ways the Canadian cannabis producer has been able to accomplish this is through strategic partnerships with celebrities like Snoop Dogg and Martha Stewart. Although these brands have not proven to be major revenue generators, we believe that the business is in the middle of a major growth cycle and expect these brands to perform well over the long-term.
Last week, Canopy Growth reported a major milestone and announced the launch of Martha Stewart CBD, a new line of premium quality, hemp-derived wellness supplements that have flavor profiles that were inspired by some of Martha’s most popular recipes. The initial product offering will include a range of human wellness supplements, with a gift box and pet line launching later this year.
Martha’s CBD product line was created in collaboration with the cannabinoid scientists at Canopy Growth to deliver a consistent daily dose of pure, premium CBD isolate. Since CBD is legal in the US, the company will be able to target the US market and are favorable on the opportunity that is associated with the launch.
At launch, the Martha Stewart CBD product line includes:
- CBD 10mg Wellness Gummies in Citrus Medley (Meyer Lemon, Kumquat and Blood Orange flavors, 30 count) for $34.99
- CBD 10mg Wellness Gummies in Berry Medley (Raspberry, Huckleberry and Black Raspberry flavors, 30 count) for $34.99
- CBD 25mg Softgels (Unflavored, 30 count) for $44.99
- CBD 750mg Oil Drops (Blood Orange, Meyer Lemon or Unflavored) for $44.99
We are favorable on the price point that is associated with the CBD products and expect the line to gain traction with consumers. Canopy Growth is focused on bringing consumers science-backed, premium quality products and we will monitor how the management team is able to roll out additional products.
During the last month, Canopy Growth has been trading in a volatile pattern and this is trend to be aware of. The Canadian cannabis producer has come well off its highs of the year and we will monitor the trend on a going forward basis.