Canopy Growth Enters Sports Beverage Market

Canopy Growth Enters Sports Beverage Market

Canopy Growth (US:CGC / CAN:WEED) has endured more than its share of criticism over the past year, some of it justified. It prompted a change in CEO. But the pot heavyweight’s latest move appears to be a marketing winner.

Cannabis-infused sports beverages.

Canopy Growth is acquiring Toronto-based BioSteel Sports Nutrition Inc. BioSteel is a Canadian manufacturer of sports drinks. Phase 2 of cannabis legalization in Canada (October 17, 2019) will make cannabis-infused versions of these drinks legal in Canada.
 

Founded in 2009, BioSteel’s products have been bought by 70 per cent of the teams in North America’s four major sports leagues and have brand ambassador deals with hockey legend Wayne Gretzky, Edmonton Oilers star Connor McDavid and Brooke Henderson, one of the best female golfers in the world, according to the company.

Globally, the sports nutrition market is estimated at US$40 to $50 billion in size, with a robust growth curve. Infusing sports beverages (or snacks) with cannabinoids can only add to the potential of this market.

Cannabis-infused sports drinks. Even a few years ago, that would have seemed like a non sequitur. But no longer. Cannabis is already recognized for its medicinal value. It’s just beginning to get recognized for its rejuvenation properties.

For both of these reasons, the connection between cannabis and both athletic and professional sports continues to grow.

Former professional athletes in high-contact sports like football and hockey are banging the drum about the value of cannabis in treating chronic health issues, most often relating to chronic pain. However, there is growing empirical evidence of the value of cannabis to improve athletic training and performance.
 

Cannabis is believed to provide consumers with several beneficial uses, ranging from mental to physical relief. Many athletes have turned to THC and CBD products to treat their bodies after rigorous games and training sessions.

Its use extends to fitness enthusiasts of all levels. So much so that a CU Boulder study found that eight out of 10 users in states where cannabis is legal consume shortly before or after working out.

This is an important niche market for the cannabis industry and Canopy Growth has the market reach to capitalize on this opportunity.

For cannabis investors, the Big Picture here is the market penetration potential of cannabis. No one is more focused on health (and what they put into their bodies) than athletes.

If the Average Joe and Average Jane is reaching for a cannabis product both before and after their workouts, that’s a marketing angle that the cannabis industry should seize upon – and run with it.
 

Published at Wed, 02 Oct 2019 15:37:06 +0000

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