Canopy Growth and Martha Stewart Launch CBD Products Line
At long last, Martha Stewart’s line of CBD (cannabidiol) products made in partnership with Canada’s Canopy Growth Corporation have arrived.
In a news release, Ontario-based Canopy said the new line — which includes gummies, drop, softgels and forthcoming pet products — was “specially formulated by Martha Stewart, in collaboration with the cannabinoid scientists at Canopy Growth.”
The hemp-derived offerings — which are available for purchase on Canopy’s online shop — is more than a year in the making.
Stewart, an American businesswoman who built a multimillion-dollar fortune as a television personality and lifestyle expert, joined Canopy as an advisor in late February 2019.
Her eponymous brand name is owned by Marquee Brands, and investment firm where Stewart herself serves as chief creative officer.
“I’ve found that CBD supplements are a simple way to enhance my own health and wellness, especially when it comes to managing the stresses of daily life,” Stewart said via the release, noting that she “set out to create the most delicious CBD products on the market.”
That market is particularly frothy, with thousands of CBD brands all vying for a slice of a rapidly emerging segment that is expected to reach $12.4 billion in sales by 2023, according to Brightfield Group. The research firm also said sales of CBD products are expected to grow 14% in 2020, to $4.7 billion.
For his part, Canopy CEO David Klein has said he expects U.S. CBD sales to hit $10 billion by 2023, and that CBD pet products could reach $600 million annually.
The Martha Stewart-branded CBD products range in price from $34.99 to $44.99, and made with unique flavors like kumquat, huckleberry, and blood orange, among others.
“My wellness gummies closely resemble the French confections, pâte de fruits, rather than the sticky, overly sweet versions you might find elsewhere,” Stewart said in a statement.
Jeffries analyst Owen Bennett viewed the announcement favorably, writing in a note to investors that Canopy's CBD portfolio — which also includes First & Free, Biosteel, and ThisWorks — is "now looking very impressive."
"What stands out is the consumer segmentation across the portfolio, as well as the range of product offerings," he wrote. "We would expect the US CBD contribution to pick up strongly over the next several quarters, which should help offset ongoing pressures in Canada, arguably a result of not adopting appropriate segmentation."
Bennett also noted that Stewart's CBD gummy offerings are 14% cheaper than average gummy prices at $0.11/mg (versus $0.14/mg). Softgel and oil prices are also 28% and 31% lower, respectively.
Canopy’s partnership with Stewart is not its only celebrity relationship. The company also works with rapper Snoop Dogg, whose real name is Calvin Broadus, actor Seth Rogan and music artist Drake.
Stewart, 79, actually got introduced to Canopy through Broadus, who co-markets a line of THC-infused cannabis products called “Leafs by Snoop” made by the Canadian firm’s Tweed brand.
Canopy also has a partnership with NFL superstar Patrick Mahomes, via its majority stake in the Biosteel Sports Nutrition brand. Biosteel also makes and markets CBD-enhanced offerings, but Mahomes is not involved in promoting those items.
Several other celebrities have endorsed CBD products in the past, including another NFL superstar, Rob Gronkowski, among many others.
Gronkowski has promoted the CBDMedic line of products made by Abacus Health Products, which was sold to Charlotte’s Web Holdings earlier this year in an all-stock transaction valued at $69 million.
According to Brightfield Group, the CBD space has undergone a round of consolidation in 2020. The top players include Charlotte’s Web, Medterra and Green Roads.
In July Canada’s Future Farm technologies closed its acquisition of Massachusetts-based CBD manufacturer High Purity Natural Products.
Meanwhile, Aurora Cannabis announced in May that it would trade $40 million in stock to acquired Massachusetts-based Reliva, LLC.
According to New Frontier Data, a global cannabis research firm based in Washington D.C., 86% of U.S. consumers have heard of CBD. However, only 18% of Americans have consumed CBD, and 29 % of U.S. consumers — about 73 million people — anticipate purchasing a product containing CBD before the end of the year.
Additional information about the new Martha Stewart CBD products is available in the release copied below.
Martha Stewart and Marquee Brands Partner with Canopy Growth Corporation to Launch Martha Stewart CBD
SMITHS FALLS, ON & NEW YORK, NY (Sept. 10, 2020) — Canopy Growth Corporation (TSX: WEED, NYSE: CGC), a world-leading diversified cannabis, hemp, and cannabis device company, today announced the launch of Martha Stewart CBD — a new line of premium quality, hemp-derived wellness supplements, with flavor profiles inspired by some of Martha’s most popular recipes. The initial product offering will include a range of human wellness supplements, with a gift box and pet line launching later this year.
The new portfolio of natural, gourmet flavored wellness gummies, softgels and oil drops are specially formulated by Martha Stewart, in collaboration with the cannabinoid scientists at Canopy Growth, to deliver a delicious and consistent daily dose of pure, premium CBD isolate. Inspired by ingredients in Martha’s own kitchen, the products are naturally flavored and are made in the USA with hemp-derived CBD isolate. The results are pure, safe and great-tasting CBD products that are easy to incorporate into your daily wellness routine.
“I’ve found that CBD supplements are a simple way to enhance my own health and wellness, especially when it comes to managing the stresses of daily life,” said Martha Stewart. “I set out to create the most delicious CBD products on the market, drawing inspiration from some of my favorite recipes and flavor profiles from my greenhouse and gardens. My wellness gummies closely resemble the French confections, pâte de fruits, rather than the sticky, overly sweet versions you might find elsewhere. Created in collaboration with the top researchers and scientists at Canopy Growth, I am very proud of the end result: wellness gummies, oil drops and softgels that taste as wonderful as they make you feel.”
At launch, the Martha Stewart CBD product line includes:
- Martha Stewart CBD 10mg Wellness Gummies in Citrus Medley (Meyer Lemon, Kumquat and Blood Orange flavors, 30 count) for $34.99
- Martha Stewart CBD 10mg Wellness Gummies in Berry Medley (Raspberry, Huckleberry and Black Raspberry flavors, 30 count) for $34.99
- Martha Stewart CBD 25mg Softgels (Unflavored, 30 count) for $44.99
- Martha Stewart CBD 750mg Oil Drops (Blood Orange, Meyer Lemon or Unflavored) for $44.99
Said Canopy Growth CEO David Klein of the partnership, “We are committed to leading the CBD industry by providing trusted brands, which is why we’ve chosen to collaborate with Martha Stewart, someone who people turn to for advice on living well. Together, we’re bringing consumers science-backed, premium quality products in elegantly designed and gourmet flavored formats, available at a price point that makes Martha Stewart CBD one of the best values on the market.”
Martha Stewart CBD is available at Canopy Growth’s one-stop ecommerce destination, Shop Canopy.
For more information, or to purchase Martha Stewart CBD, visit launch.marthastewartcbd.com.
About Canopy Growth Corporation
Canopy Growth (TSX: WEED, NYSE: CGC) is a world-leading diversified cannabis, hemp and cannabis device company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms, as well as medical devices through Canopy Growth’s subsidiary, Storz & Bickel GMbH & Co. KG. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time.
Canopy Growth’s medical division, Spectrum Therapeutics is proudly dedicated to educating healthcare practitioners, conducting robust clinical research, and furthering the public’s understanding of cannabis, and has devoted millions of dollars toward cutting edge, commercializable research and IP development. Spectrum Therapeutics sells a range of full-spectrum products using its colour-coded classification Spectrum system as well as single cannabinoid Dronabinol under the brand Bionorica Ethics.
Canopy Growth operates retail stores across Canada under its award-winning Tweed and Tokyo Smoke banners. Tweed is a globally recognized cannabis brand which has built a large and loyal following by focusing on quality products and meaningful customer relationships.
From our historic public listing on the Toronto Stock Exchange and New York Stock Exchange to our international expansion, pride in advancing shareholder value through leadership is engrained in all we do at Canopy Growth. Canopy Growth has established partnerships with leading sector names including cannabis icons Snoop Dogg and Seth Rogen, breeding legends DNA Genetics and Green House Seeds, as well as lifestyle guru Martha Stewart and Fortune 500 alcohol leader Constellation Brands, to name but a few. For more information visit www.canopygrowth.com
About Marquee Brands
Marquee Brands is a leading global brand owner and marketer. Owned by investor funds managed by Neuberger Berman, one of the world’s leading employee-owned investment managers, Marquee Brands targets high quality brands with strong consumer awareness and long-term growth potential. Marquee Brands seeks to identify brands in various consumer product segments with the goal of expanding their reach across retail channel, geography and product category while preserving the brand heritage and enhancing the ultimate consumer experience. Through its global team of professionals and partners, Marquee Brands monitors trends and markets in order to grow and manage brands in partnership with retailers, licensees and manufacturers through engaging, impactful strategic planning, marketing, and e- commerce. www.marqueebrands.com. In 2019, Marquee Brands acquired the Martha Stewart brand, which reaches approximately 100 million consumers across all media and merchandising platforms each month. Martha Stewart is the Founder of Martha Stewart Living Omnimedia and America’s most trusted lifestyle expert and teacher. Her branded products can be found in over 70 million households and have a growing retail presence in thousands of locations.
Notice Regarding Forward Looking Statements
This news release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Often, but not always, forward-looking statements and information can be identified by the use of words such as “plans,” “expects” or “does not expect,” “is expected,” “estimates,” “intends,” “anticipates” or “does not anticipate,” or “believes,” or variations of such words and phrases or state that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved. Forward-looking statements or information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Canopy Growth or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements or information contained in this news release. Examples of such statements include statements with respect to future product format offerings. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including the Canopy Growth’s ability to satisfy provincial sales contracts or provinces purchasing all cannabis allocated to them, and such risks contained in the Company’s annual information form dated June 25, 2019 and filed with Canadian securities regulators available on Canopy Growth’s issuer profile on SEDAR at www.sedar.com. Although Canopy Growth believes that the assumptions and factors used in preparing the forward-looking information or forward-looking statements in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information and forward-looking statements included in this news release are made as of the date of this news release and Canopy Growth does not undertake an obligation to publicly update such forward-looking information or forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities laws.