It’s a good thing. Or so hopes Canopy Growth Corp. (TSX: WEED) and its CBD partnership with vaunted lifestyle guru Martha Stewart.
During an online investor meeting this week, the Canadian cannabis company said it will launch a number of Stewart-branded CBD edibles and pet products across America this fall.
Canopy forecasts that the U.S. CBD market will hit $10 billion by 2023, up six-fold from today, and it plans to bank on Stewart’s household name to gain market share.
The company already sells CBD drinks and topicals stateside under three separate brands — This Works, First & Free and BioSteel — and plans to have 40 products launched in total by the end of this year.
Stewart, 78, joined forces with Canopy as an advisor in early 2019 to develop a broad range of CBD products using her 30,000 recipes published in Martha Stewart Living magazine.
Canopy expects big results as her publication boasts over 7.3 million readers who are 91 per cent female with a median household income of US$82,175, according to media researchers at Meredith.
Canopy says new U.S. CBD regulations are coming
The company noted how the U.S. CBD market is currently “cluttered and confusing” with more than 2,700 brands on the market.
The vast majority of Americans have heard of CBD, but only 18 per cent of people have tried it and 86 per cent of those who have couldn’t point out any specific brand, according to Canopy.
And 94 per cent of CBD companies have sales below $1 million primarily due to an increasingly crowded and highly competitive space.
“We believe this presents an opportunity for us to capture significant market share, and allows us to differentiate ourselves with a science-backed product focus and ultimately brand led approaches to this market,” CEO David Klein said.
Canopy has been conducting in-house research trials since it announced its partnership with Stewart. The company is exploring how the non-intoxicating CBD compound can improve the lives of humans and animals including its effectiveness in treating anxiety.
Klein said the company has been working closely with the U.S. Food and Drug Administration to share the research around CBD’s safety and efficacy at different dosages, and to work with them to establish a recommended daily dose for CBD.
The CBD industry has been critical of the FDA, claiming the agency has been dragging its feet to develop a regulatory framework for the touted wellness extract.
With Canopy and the industry sharing their science with the FDA, Klein said it will ultimately lead the federal regulator to provide a legal definition for CBD.
If that effort is stalled, the CEO noted that the company is in ongoing discussions with lawmakers on Capitol Hill to veto the FDA and provide a legislative solution for CBD through the classification as a dietary supplement. He said there is a current bill that’s been introduced by in the House that would amend the Food, Drug and Cosmetic Act to reclassify CBD as a dietary supplement.
Canopy said it sells CBD-infused sports drinks and supplements under its BioSteel brand in over 500 Vitamin Shoppe locations across the U.S.
The company said it plans to sell its Martha Stewart CBD brand inside big box retail stores and build a top-three market share position in the country.
“We intend to make a lot of noise in the U.S. over the next couple of years,” Klein said.
Top photo illustration via Deposit Photos and nrkbeta’s photos from Wikimedia Commons