Recently, we learned that the edibles market for cannabis would be ready to go by mid-December. Many companies have been ramping up and getting ready for the launch, including Hexo Corp, which said that it will have cannabis-infused beverages ready to go on day one. It’s likely that Canopy Growth Corp (TSX:WEED)(NYSE:CGC), which has partnered with beer maker Constellation Brands, will also have some products lined up.
When it comes to the broader edibles segment, however, Canopy Growth could have a big advantage over its rivals by having a name like Martha Stewart behind its products. With so many products and options for consumers to choose from, having a way to differentiate and stand out from the rest will be key. And by having Stewart vouch for them and claim to use them will go a long way to adding credibility to the products, especially with her fans.
At the World Cannabis Congress, she recently stated, “I’ve been experimenting little bit with some of the good products that are available now, I find them very useful and really good for your skin, and I think the anti-inflammatory qualities of some of them are very good.”
With Stewart working on various projects including animal products and cosmetics, Canopy Growth will be able to develop a wide array of products that she will have had a hand in. The biggest opportunity could be in food products, where she says. “Martha Stewart Living has 30,000 or 35,000 original recipes, and those can be adapted with cannabis or CBD or whatever we’re going to use.”
The sky’s the limit as far as how Canopy Growth can benefit as a result of having Stewart on board, which should get investors excited for the company’s potential growth once the edibles market launches. What’s even more exciting is that Stewart’s name likely has much more of an impact south of the border, where Canopy Growth can’t yet sell its edible products, with the one exception being hemp-based products.
The federal legalization of marijuana in the U.S., whenever it happens, will open the floodgates, giving the company access to a massive new market.
In Canada, it may take some time for the edibles market to realize its potential, as the rollout is likely going to take some time as supply and other issues may constrain the market. However, it can offer a good testing ground for cannabis producers to see what works and what doesn’t in preparation for what will be a much bigger launch when the U.S. market becomes available.
Canopy Growth has done a phenomenal job of growing and developing its brand, making it the unquestioned market leader up to this point. It has brought in big names to help grow its company, and Martha Stewart could prove to be a very significant one in the edibles segment. While the stock may still be an expensive one today, with all the growth potential that the company has, it could still prove to be a good buy today.
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Fool contributor David Jagielski has no position in any of the stocks mentioned.