Canopy Growth delays launch of cannabis-infused beverages

Cannabis

The company planned to roll out a slate of C.B.D.- and T.H.C.-infused beverages in January to coincide with the second wave of national legalization in Canada. The launch was postponed due to a delay in the scaling process.

“Canopy has had seven weeks to work with T.H.C. in the brand-new beverage facility to scale processes and I.P. it has developed in the R.&D. environment,” said David Klein, chief executive officer at Canopy Growth. “In order to deliver products that meet our customer’s high standards we are electing to revise the launch date while we work through the final details.”

Mr. Klein joined Canopy on Jan. 14 from Constellation Brands, where he was a chief financial officer. Constellation invested nearly $4 billion in Canopy in 2018 and currently has a 38% stake in the company.

The delayed beverage launch is not expected to have an impact on financial results for fiscal 2020, which ends March 31.

Companies began selling C.B.D.- and T.H.C.-infused drinks and edibles in Canada in December.

Canopy isn’t necessarily missing out on consumers’ excitement about newly legal cannabis products, though. The company released several varieties of chocolate edibles under the Tokyo Smoke and Tweed brands earlier this month.

In an interview with the Canadian Broadcast Corp. last week, Kelly Olsen, head of merchandising for Canopy Growth, said shipments were selling out within hours.

“Overall for the edible category, we are seeing a strong response from our guests, with most products selling out quite quickly once they are received in stores,” she said.

Canopy did not say when it plans to launch its beverages. An update is expected when the company reports its fiscal 2020 third-quarter results on Feb. 14.