One month after launching its CBD-infused beverage line Quatreau within the U.S., Canadian cannabis agency Canopy Growth Corporation introduced that alcohol wholesaler Southern Glazer’s Wine & Spirits (SGWS) would distribute its CBD drinks all through the U.S.
In a news release, Canopy mentioned SGWS would initially distribute the Quatreau line of CBD-infused glowing waters throughout seven states.
A spokesperson confirmed to THCnet that Arizona, Florida, Kansas, Missouri, New Mexico, Nevada, and Oregon are the primary states to see distribution of Quatreau.
SGWS boasts operations in 44 U.S. states and Washington D.C., and the CBD drinks are anticipated to achieve further markets within the coming months.
“There is strong consumer interest in the CBD-infused beverage category and our distribution network is uniquely positioned to deliver the most efficient and effective route-to-market for CBD suppliers and retail customers,” SGWS chief growth officer David Chaplin said via the release.
Available in 4 flavors — Cucumber + Mint, Passion Fruit + Guava, Ginger + Lime, and Blueberry + Acai — the sugar-free Quatreau drinks include 25 energy and 20 milligrams of CBD isolate derived from hemp. It was initially solely accessible by way of Canopy’s on-line retailer and shipped to 32 states.
Canopy’s take care of SGWS was aided by its “strategic relationship” with Constellation Brands, a New York-based alcohol producer which owns a 38.6% stake in cannabis agency.
Last month, Constellation and SGWS agreed to expand their distribution partnership. As of April 1, SGWS distributed 70% (up from about 40%) of Constellation’s non-beer manufacturers, together with labels like Svedka and Robert Mondavi.
“The leadership team at Southern Glazer’s shares our values, priorities, and future-forward view of the category,” Canopy chief business officer Julious Grants mentioned by way of the discharge. “Together, we’re dedicated to creating a right away strategic path to marketplace for Canopy’s premium CBD drinks.”
According to SGWS chief business officer John Wittig, Canopy’s CBD drinks portfolio “brings new energy” to the beverage market and “increases the level of consumer interest” in different merchandise that SGWS distributes.
“We are excited to be including Quatreau as the primary CBD-infused beverage in our portfolio,” Wittig added.
While this is likely to be the wholesaler’s first foray into CBD beverage distribution within the U.S., the corporate’s Canadian subsidiary, Great North Distributors, has been delivering authorized cannabis merchandise since 2018.
Meanwhile, within the U.S., mainstream retail alternatives for CBD drinks stay restricted.
CBD, brief for cannabidiol, is the nonintoxicating cannabinoid discovered within the cannabis household of vegetation. Advocates say it reduces irritation, improves sleep, alleviates stress, and helps regulate temper.
However, these claims haven’t been substantiated by the U.S. Food and Drug Administration (FDA), and the company has but to problem closing regulatory steering for merchandise containing CBD.
Most main chain retailer operators are ready for that steering to hit earlier than they decide to stocking their cabinets with a plethora of manufacturers. Right now, CBD drinks are primarily being offered on-line and thru the impartial channel.
According to market analysis agency BDSA, gross sales of CBD drinks are anticipated to achieve $246 million this yr, however that might develop to $1.4 billion in 2025 as soon as broader retail channels are opened up.
In the meantime, Canopy seems to be pushing forward because it appears to be like to stake its declare within the still-emerging class.
Additional data is out there within the information launch beneath.
Canopy Growth Signs U.S. Distribution Agreement with Southern Glazer’s Wine & Spirits for CBD Beverage Portfolio
The Company Will Tap into Southern Glazer’s Established Distribution Network to Bring Quatreau, its CBD-Infused Sparkling Water, to U.S. Retailers
NEW YORK — Canopy Growth Corporation (“Canopy Growth”) (TSX: WEED) (NASDAQ: CGC), a world-leading diversified cannabis, CBD and vaporization gadget firm, at the moment introduced Southern Glazer’s Wine & Spirits (“Southern Glazer’s”), the world’s pre-eminent distributor of beverage alcohol, because the distribution companion for its U.S. portfolio of CBD-infused drinks. This partnership announcement follows the latest launch of Quatreau — Canopy’s first line of CBD-infused drinks offered within the U.S. market.
“Through this groundbreaking partnership, we will leverage Southern Glazer’s established distribution network to bring our CBD beverage portfolio to retailers and consumers across the U.S. market,” mentioned Julious Grant, Chief Commercial Officer, Canopy Growth. “The leadership team at Southern Glazer’s shares our values, priorities, and future-forward view of the category. Together, we are committed to creating an immediate strategic route to market for Canopy’s premium CBD beverages.”
Southern Glazer’s will distribute Canopy Growth’s CBD drinks, starting with its CBD-infused glowing water model Quatreau™, throughout seven states, with further states within the months to come back. Southern Glazer’s can be promoting Quatreau™ by means of its current business infrastructure, together with its industry-leading Proof® e-commerce platform at sgproof.com. Canopy Growth is without doubt one of the first U.S. CBD beverage producers to entry the nationwide community of a large-scale alcohol distributor to achieve shoppers throughout the U.S. at mainstream retail shops. The settlement additionally showcases the advantages of the corporate’s strategic relationship with Constellation Brands, the worldwide beverage chief.
“This agreement reinforces our consumer-focused approach to identifying emerging growth areas where we can add value for our customers,” mentioned David Chaplin, Chief Growth Officer, Southern Glazer’s Wine & Spirits. “There is strong consumer interest in the CBD-infused beverage category and our distribution network is uniquely positioned to deliver the most efficient and effective route-to-market for CBD suppliers and retail customers. We’re proud to align with Canopy Growth, a company well-positioned to lead this product category with a portfolio of premium, highly desirable consumer brands.”
“Innovation in the beverage industry like we are seeing from Canopy Growth brings new energy to the marketplace and increases the level of consumer interest in all our products,” added John Wittig, Chief Commercial Officer, Southern Glazer’s Wine & Spirits. “We are excited to be adding Quatreau as the first CBD-infused beverage in our portfolio.”
Quatreau glowing water comprises 20 mg of premium, U.S. grown hemp-based CBD, in 4 refreshing flavors: Cucumber + Mint, Passion Fruit + Guava, Blueberry + Acai, and Ginger + Lime. With an MSRP of $3.99 per 12-ounce can, Quatreau is a practical zero-sugar drink that delivers a pure, low calorie beverage various. The stateside launch follows the profitable 2020 rollout of Quatreau in Canada, the place it’s now the top-selling ready-to-drink CBD beverage.
For extra details about Canopy Growth, go to www.canopygrowth.com.
About Canopy Growth Corporation
Canopy Growth (TSX: WEED, NASDAQ: CGC) is a world-leading diversified cannabis and cannabinoid-based client product firm, pushed by a ardour to enhance lives, finish prohibition, and strengthen communities by unleashing the complete potential of cannabis. Leveraging client insights and innovation, we provide product varieties in top quality dried flower, oil, tender gel capsule, infused beverage, edible, and topical codecs, in addition to vaporizer gadgets by Canopy Growth and industry-leader Storz & Bickel. Our international medical model, Spectrum Therapeutics, sells a spread of full-spectrum merchandise utilizing its color-coded classification system and is a market chief in each Canada and Germany. Through our award-winning Tweed and Tokyo Smoke banners, we attain our adult-use shoppers and have constructed a loyal following by specializing in high quality merchandise and significant buyer relationships. Canopy Growth has entered into the well being and wellness client house in key markets together with Canada, the United States, and Europe by means of BioSteel sports activities vitamin, and This Works pores and skin and sleep options; and has launched further federally-permissible CBD merchandise to the United States by means of our First & Free and Martha Stewart CBD manufacturers. Canopy Growth has a longtime partnership with Fortune 500 alcohol chief Constellation Brands. For extra data go to www.canopygrowth.com.
About Southern Glazer’s Wine & Spirits
Southern Glazer’s Wine & Spirits is the world’s pre-eminent distributor of beverage alcohol, and proud to be a multi-generational, family-owned firm. The firm has operations in 44 U.S. states, the District of Columbia and Canada. Southern Glazer’s urges all retail prospects and grownup shoppers to market, promote, serve and revel in its merchandise responsibly. For extra data go to www.southernglazers.com. Follow us on Twitter and Instagram @sgwinespirits and on Facebook at Facebook.com/SouthernGlazers.
Notice Regarding Forward-Looking Statements
This information launch comprises “forward-looking statements” and “forward-looking information” throughout the which means of relevant U.S. and Canadian securities legal guidelines (collectively, “forward-looking statements”), which contain sure recognized and unknown dangers and uncertainties. Forward-looking statements predict or describe our future operations, enterprise plans, enterprise and funding methods and the efficiency of our investments. These forward-looking statements are usually recognized by their use of such phrases and phrases as “intend,” “goal,” “strategy,” “estimate,” “expect,” “project,” “projections,” “forecasts,” “plans,” “seeks,” “anticipates,” “potential,” “proposed,” “will,” “should,” “could,” “would,” “may,” “likely,” “designed to,” “foreseeable future,” “believe,” “scheduled” and different comparable expressions. You are cautioned to not place undue reliance on these forward-looking statements, which communicate solely as of the date the assertion was made. Forward-looking statements are essentially based mostly upon a lot of estimates and assumptions that, whereas thought of cheap by administration, are inherently topic to vital enterprise, financial and aggressive dangers, monetary outcomes, outcomes, efficiency or achievements expressed or implied by these forward-looking statements and the forward-looking statements are usually not ensures of future efficiency. Accordingly, there are or can be vital components that might trigger precise outcomes or outcomes to vary materially from these indicated in these statements. A dialogue of a number of the materials components relevant to Canopy Growth Corporation (“Canopy”) will be discovered underneath the part entitled “Risk Factors” in Canopy’s Annual Report on Form 10-Okay for the yr ended March 31, 2020, filed with the Securities and Exchange Commission and with relevant Canadian securities regulators, as such components could also be additional up to date occasionally in its periodic filings with the Securities and Exchange Commission and with relevant Canadian securities regulators, which will be accessed at www.sec.gov/edgar and www.sedar.com, respectively. These components shouldn’t be construed as exhaustive and needs to be learn along side the opposite cautionary statements which are included on this information launch and within the filings. Any forward-looking assertion included on this information launch is made as of the date of this information launch and, besides as required by regulation, Canopy disclaims any obligation to replace or revise any forward-looking assertion. Readers are cautioned to not put undue reliance on any forward-looking assertion. Forward-looking statements contained on this information launch are expressly certified by this cautionary assertion.