While Canopy Growth Corp. (TSX: WEED) waits for the U.S. to legalize, the Canadian weed titan continues to expand its BioSteel sports drink brand across the nation.
On Monday, Canopy said it partnered with two large U.S. beverage firms to distribute BioSteel drink products to consumers in New York, California and Florida.
Manhattan Beer, a top-10 American beer distributor serving 25,000 clients, will bring BioSteel into 14 metro New York counties, while Reyes Beer Division will cover key markets in California and Florida.
Canopy says the move showcases how it can leverage Constellation Brands’ vast beverage distribution network to market its products stateside.
Constellation bought a 37 per cent stake in Canopy in 2018 for $5 billion. Canopy bought a majority stake in BioSteel last fall.
We're thrilled to announce new partnerships with two leading beverage distribution companies, Manhattan Beer & Reyes Beer Division, to help bring our new Ready-to-Drink sports beverages directly to customers across the United States! Learn more at https://t.co/px66PYgNyV pic.twitter.com/aBpBTGCjOk
— BioSteel (@BioSteelSports) October 13, 2020
Since then, BioSteel has launched a massive U.S. marketing campaign, recently signing NFL stars Patrick Mahomes and DeAndre Hopkins, as well as a bevvy of fitness influencers to promote its products.
BioSteel’s stated goal is to build brand awareness and market share with health-minded U.S. consumers, while securing distribution into the country’s top grocery, gas and mass retailers.
“The benefits of the strategic relationship between BioSteel and Canopy Growth are clearly showcased with these milestone distribution partnerships,” Canopy CEO David Klein said in a statement.
BioSteel was founded in 2009 by former NHL player Michael Cammalleri with a focus on nutritious, sugar-free drink powders.
The company has rolled out drinks this year that have been promoted by big NHL names like Wayne Gretzky and Connor McDavid.
In July, Canopy extended BioSteel’s offerings by launching a variety of CBD sport supplements and powdered drinks that are sold on its U.S. e-commerce website.
However, Canopy did not mention that those new CBD products would be included in the two new stateside distribution deals.
The firm has been cautious with its CBD strategy in the U.S. since the industry still awaits clarification from the Food and Drug Administration on marketing cannabidiol-based products.
On the THC side, Canopy is looking to pounce on federal cannabis legalization with its partner Acreage Holdings (CSE: ACRG.A.U), a multi-state operator that has agreed to be acquired by the Canadian firm once prohibition is lifted.
Canopy said earlier this month it’s working with Acreage to distribute THC-infused beverages in the U.S. by next year, starting in Illinois and California.
Top image via BioSteel