Canopy Growth (TSX:WEED)(NYSE:CGC) is a world-leading, diversified cannabis and cannabinoid-based consumer products company with operations in countries across the world. The company produces, distributes, and sells a diverse range of cannabis and hemp-based products and other consumer products for both recreational and medical purposes under a portfolio of distinct brands in Canada. Canopy Growth sells products pursuant to the Cannabis Act, and globally pursuant to applicable international and Canadian legislation, regulations, and permits.
Impact of regulations regarding the distribution and sale of recreational cannabis
On October 17, 2018, the Cannabis Act came into effect in Canada, regulating both the medical and recreational cannabis markets in Canada and providing provincial, territorial, and municipal governments the authority to prescribe regulations regarding the distribution and sale of recreational cannabis. On October 17, 2019, the second phase of recreational cannabis products was legalized pursuant to certain amendments to the regulations under the Cannabis Act.
Product varieties and recreational cannabis products
Canopy Growth currently offers product varieties in dried flower, oil, softgels, vape pen power sources, pod-based vape devices, vape cartridges, cannabis-infused beverages, and cannabis-infused edibles, with product availability varying based on provincial and territorial regulations. Canopy Growth’s recreational cannabis products are predominantly sold to provincial and territorial agencies under a business-to-business wholesale model, with those provincial and territorial agencies then being responsible for the distribution of the company’s products to brick-and-mortar stores and for online retail sales.
Promoting brand awareness and driving consumer demand
In addition, Canopy Growth also operates a network of Tweed and Tokyo Smoke retail stores across Canada, where permissible, to promote brand awareness and drive consumer demand under a business-to-consumer model.
Diverse portfolio of medical cannabis products
Further, the company’s Spectrum Therapeutics medical division is a global leader in medical cannabis. Spectrum Therapeutics produces and distributes a diverse portfolio of medical cannabis products to healthcare practitioners and medical customers in Canada, and in several other countries where it is federally permissible to do so.
Expanding the company’s portfolio of medical cannabis offerings
In April 2019, Canopy Growth acquired C3 Cannabinoid Compound Company, Europe’s largest cannabinoid-based pharmaceuticals company and a leading manufacturer of dronabinol, a registered active pharmaceutical ingredient in Germany and certain other European countries. The addition of dronabinol has allowed Canopy Growth to expand the company’s portfolio of medical cannabis offerings for the company’s customers in Germany.
Investments in modernized manufacturing facilities
Subsequent to the passage, in December 2018, of the United States Agricultural Improvement Act of 2018, Canopy Growth began building the company’s hemp supply chain in the United States through the company’s investment in processing, extraction and finished goods manufacturing facilities. In September 2020, Canopy Growth’s Martha Stewart cannabidiol (CBD) line of premium quality, hemp-derived wellness gummies, oils, and softgels was launched in the United States.
Expanding the company’s product offering
In the fourth quarter of fiscal 2021, Canopy Growth expanded the company’s product offering to include CBD products for pets under the Martha Stewart CBD for Pet line and SurityPro, and a line of premium, ready-to-drink CBD-infused sparkling waters under the Quatreau brand.
Overall, Canopy Growth looks set to continue growing and creating value for shareholders.
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The Motley Fool has no position in any of the stocks mentioned. Fool contributor Nikhil Kumar has no position in any of the stocks mentioned.