Canopy Growth (TSX:WEED) is launching its first cannabis drinks in the U.S. as the move to legalize the recreational drug gains momentum south of the border.
Specifically, the Canadian cannabis producer is launching four sparkling cannabidiol waters in the United States.
The Smiths Falls, Ontario-based company said four drinks from its Quatreau brand will be available online to U.S. customers immediately. They will each contain 20 milligrams of CBD, come in flavours that include ginger and lime; cucumber and mint; blueberry and acai; and passion fruit and guava; and will be Canopy Growth's first CBD drinks to be sold south of the Canadian border.
Canopy Growth’s beverages, which have been available in Canada since last fall, will join Martha Stewart and BioSteel cannabis drinks that are already sold in the U.S.
Industry observers believe U.S. opportunities will multiply this year because President Joe Biden and his Democratic party favour legislation to relax federal cannabis laws.
Biden has said publicly that he supports decriminalizing cannabis, expunging criminal records related to its possession, and the Safe Banking Act, a Democratic bill that would allow financial institutions to work with cannabis companies without penalty.
Ahead of his inauguration, the U.S. House of Representatives paved the way for federal cannabis legalization by voting in favour of taking the substance off the "dangerous drugs list," but Senate and White House approvals are needed for the policy to be implemented. Some believe those approvals could come later this year.
Consumer demand for cannabis products is growing. New Frontier Data predicts that $121 billion U.S. will be spent on CBD across the U.S. between 2020 and 2025, with consumers between the ages of 34 and 44 fueling much of the growth.
