Canadian Cannabis Companies Breaking Into American Market
Big-Name Canadian Cannabis Companies Are Literally Crashing the US – LPC
Within hours of the US launch of Houseplant – one of the big-name Canadian cannabis companies – its website crashed. Co-owner Seth Rogen said that the launch attracted “a billion times more traffic than expected.” It’s the end of a ten-year journey for him, Rogen said.
“I have been working on my own weed company for the last 10 years,” he said. “We are finally ready to launch in America.
“What we’re doing is bringing you the best strains of weed that have been handpicked, by that I mean hand smoked, by me. It’s just the weed that I love that I want to be smoking.”
Rogen has said in the past that cannabis should be more accessible. That includes selling cannabis in bars. Aside from helping to push down the illegal market, it would also help fight stigma.
“People have tried to make me feel shame about it over the years,” Rogen said previously. “But I’m almost 40 now, I’m married, I have a good job and I have just found that none of the stigmas I was told to be true are true.”
It seems he’ll have the chance to promote that philosophy in the US as well. (Read more about Seth Rogen’s move at Vancouver is Awesome.)
Houseplant One of Many Canadian Cannabis Companies with American Ambitions
Houseplant is just one of many Canadian cannabis companies trying to make its break south of the border. Last month Fire & Flower announced it was expanding its retail cannabis empire. It entered into a licensing deal with the elusive Canadian-based, US-operating American Acres Managers. But many see it as the first step to a Circle K-based expansion once the US legalizes cannabis federally.
“Stores like Fire & Flower are being very targeted and measured in their approach,” said ATB Capital Markets Analyst David Kideckel. (Read full BNN article here.) That’s compared to other Canadian cannabis companies that have “announced grandiose US entry plans”, Kideckel said.
“The LPs are really trying to deploy capital south of the border,” said Fire & Flower CEO Trevor Fencott. “We are trying to deploy value.”
Part of the company’s model is to go where the competition is. “Let’s go where there’s a massive fragmentation markets like California and Colorado,” Fencott said.
Kideckel said that Canadian cannabis companies that offer value will be successful in the US. “If the Canadians bring something to the table that the Americans value, and there’s money to be made,” he said.
Canopy Growth Launches ‘Quatreau’ CBD Drinks In U.S.
Canopy Growth is another one of the Canadian cannabis companies that broke into the US market recently. The company launched its cannabis beverage in the US. But the kicker is – there is no kick. Unlike the Canadian cannabis beverage, the US version of Quatreau doesn’t contain THC. It is a CBD-infused sparkling water with 20mg of hemp-derived CBD.
“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 chief product officer Rade Kovacevic. “I don’t think there’s any doubt we will look at distribution beyond ecommerce.”
However, Forbes reports, the current version of Quatreau does not involved either Constellation or its US partner, Acreage Holdings. (Read the full Forbes article here.) Is this just a way to open distribution channels in the US?
It’s interesting that many companies like Fire & Flower and Canopy are being so cagey about their US dealings. From the start, Canadian cannabis companies have had to be careful about approaching the US cannabis market. Clearly most believe that full legalization is coming to the US, even if new US president Joe Biden has not announced his cannabis policy.
It seems inevitable as states like Pennsylvania are seriously considering adult-use cannabis. Which is why so many Canadian cannabis companies are positioning themselves now. There is a new green rush building, and the Wild West is about to open up.
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