Canopy Growth (NASDAQ: CGC), a Canadian cannabis firm, is launching CBD-infused Quatreau sparkling water in the United States as it hopes to establish itself within the country. As cannabis gains momentum, reforms are expected to occur under President Joe Biden. Amid the news the company’s U.S. shares increased 4% during mid-morning trading.
The new drinks come in four flavors including Cucumber & Mint, Passion Fruit & Guava, Ginger & Lime, and Blueberry & Acai. The beverages have 20 milligrams of hemp-derived CBD per 12 oz. serving and are sugar free with only 25 calories each. Each can will be sold for USD3.99 through Canopy’s online store.
“We have a great strategic partner in Constellation Brands, which has their ‘gold network’ and is particularly strong at leveraging distributors to reach a wide array of consumers,” said Canopy President and Chief Product Officer Rade Kovacevic. “I don’t think there’s any doubt we will look at distribution beyond e-commerce.”
According to Kovacevic, the U.S. market is divided, which is an excellent opportunity for a big company to grow within the region.
“The opportunity is huge,” he said. “What does it look like if we’re able to disrupt 5% of that? What does it look like if it’s more? It’s an exciting opportunity, especially considering the better-for-you health benefits that these products have compared to their analogues.”
Canopy says that within only months of launching, Quatreau is currently the best-selling CBD beverage in Canada. Various U.S. beverage manufacturers are already selling the drinks within the country.
“There are no federal laws or regulations prohibiting hemp-derived CBD inclusion in dietary supplements and foods,” Kovacevic said, and states that Canopy is “supporting” Congress and the FDA by providing research that stipulates safety and accurate dosage.