Best known for its premium 7Acres brand, industry fave Supreme Cannabis Company is the latest to join Canopy Growth’s portfolio in a mostly stock deal valued at $435 million. (This after Canopy’s acquisition of Ace Valley last week.)
The Strategy?
In an interview with BNN Bloomberg, CEO David Klein said the deal will help Canopy turn a profit, invest in new product development for the Canadian market and take that success across the border.
“It’s just part of our strategy, let’s make Canada strong, so that we can then use that, and springboard into the US market as we get federal permissibility,” he said.
Brands on the Run
Building brand loyalty among Canadian consumers ain’t easy, and Klein says that’s exactly why Supreme and Ace Valley stand out — both are in good shape to bring to the US market as soon as they can, he told Insider.
Countdown to US federal legalization
He also said Canopy’s Washington lobbyists advise that “federal permissibility is coming like a freight train.”*
“More than 70% of the US population now live in a state that has some form of legal cannabis use,” Klein told Insider. “And I think that’s just creating a lot of pressure for the federal government.”
* What all Washington lobbyists tell their clients…
