You can imagine several things when Martha Stewart comes to mind: Recipes. TV shows. Entrepreneurial success. You can now add cannabidiol (CBD) to the list.
Best marijuana producer in Canada Cover growth (NYSE: CGC) announced Thursday that Stewart would join the company as a consultant to assist in the development and marketing of a range of new hemp-based hemp products. The partnership between Canopy Growth and Stewart also includes Sequential brand group, which markets and licenses Martha Stewart's media and merchandising brands, as well as other consumer brands.
The terms of the collaboration have not been disclosed. But that's a big win for Canopy Growth, whatever the financial considerations – and there could be a lot of money to be won.
Canopy Growth President and Co-CEO Bruce Linton was excited to have Stewart join us. Linton said, "Martha is one of a kind and I'm excited to be able to work alongside this icon to enhance our CBD product offering across all categories, from humans to animals. . "
Linton's reference to animals seems to be a key part of the deal, as Stewart is well known for his love of pets. "I am excited to establish this partnership with Canopy Growth and share with them the knowledge I've gained from years of experience in the field of life," Stewart said in a statement. . "I am particularly looking forward to our first collaboration together, which will offer smart products to beloved pets."
Canopy Animal Health, a subsidiary of Canopy Growth, has already completed several preclinical studies evaluating CBD products in the treatment of anxiety in pets. The company has also completed safety testing for therapeutic cannabis products in animals.
Linton hinted at his company's interest in animal-based CBD products at the Canopy Growth third quarter teleconference held two weeks ago. He emphasized the company's intentions to go ahead with clinical studies in the dog and said that Canopy had an opportunity to develop a wide range of products for animal health.
A great opportunity
Canopy Growth and Stewart do not limit their attention to animals. The company announced in its press release announcing the partnership news that she "will also be relying on Martha's extensive knowledge of consumer products".
No details have been released on the types of specific consumer products that Stewart will help to develop Canopy Growth. However, there are many possibilities, including CBD-infused spot creams, lip balms, body lotions, muscle frictions, and more.
Legalized hemp in the United States – which by definition is cannabis with low levels of THC, a psychoactive ingredient – was the first major Canadian marijuana producer to announce its intention to expand into the US CBD market hemp, and the company is investing between $ 100 and $ 150 million in the development of an industrial hemp park in the state of New York. A partnership with Stewart could give Canopy Growth interesting leads to explore in this new market.
Estimates vary according to the size of the CBD market for hemp. the Hemp Business Journal estimates that the market will reach $ 1.3 billion by 2022. However, the cannabis market researcher, Brightfield Group, is much more optimistic, forecasting a turnover of $ 22 billion by 2022.
Linton noted that "as soon as you hear Martha's name, you know exactly who we are talking about." He is right. The Martha Stewart connection of Canopy Growth's CBD-based hemp products could give the company a competitive advantage in the form of instant recognition by consumers.
Canopy Growth is claiming that the growth of the canopy is becoming an icon in its own right. The company is the largest marijuana company in the world in terms of market capitalization. Canopy Growth has signed the largest contract in the cannabis industry with its $ 4 billion investment from an alcoholic beverage manufacturer Constellation Brands.
The collaboration with Stewart is a beautiful feather in Canopy hat. In the long run, the deal could prove to be a key step in Canopy Growth's quest for success in the United States.