Canopy is Rapidly Increase Cannabis Production Preparing for Adult-Use
We have actually evaluated Canopy Growth Corporation a fair bit, but as the biggest marijuana company on the planet by market share, it only makes good sense they would amass attention. While Aphria and Aurora stay huge gamers in the market and are likely to supply a lot of adult-use marijuana come this October, Canopy dwarfs them. Of the approximated $4 billion extra Canada is expected to sell next year in marijuana items, Canopy is most likely to represent a very large portion of it.
From the approximately 750,000 square feet of growing area Canopy had last year, the cannabis giant now has over 2.4 million square feet and is planning on having more than 5 million square feet by the end of 2019. Market price quotes recommend that Canopy will be capable of producing over 750,000 kgs of marijuana by the time they are done establishing area next year. The demand for marijuana in Canada is most likely to take in all that quickly and then some, but then that is why there are many gamers in the Canadian marijuana market.
Since March of this year, Canopy had in its inventory$101.6 million worth of marijuana item. That represents 15,726 kgs of cannabis flower, 356 kgs of pills consisting of marijuana and 6,969 liters of cannabis oil. It is not enough, however a lot more than they had in 2015 in stock. To be able to meet the need coming for adult-use cannabis they will require all of that additional cultivating area and probably more if they want to continue to dominate the market.
Huge alcohol’s interest in exactly what has become its most significant competitor in the cannabis market is apparent. In 2015 we reported that Constellations Brands, the wholesale supplier of beer brands like Corona and Modelo, Svedka Vodka and Mark West wine acquired nearly 10% of Canopy Growth Corporation. Plainly their interest in Canopy is still strong as they simply acquired over $152.5 million USD in Canopy’s convertible bonds. How involved Constellation brands is with operations at Canopy is challenging to tell. Good sense recommends that their network is the greatest benefit they give a company like Canopy.
It might simply be that Canopy is happy to take their money and have little interest in them otherwise. Alcohol sales have been dropping with the spread of the marijuana legalization and alcohol business have even alerted shareholders of the potential of more earnings loss. Between the health fad spreading throughout Canada, the United States and Europe, in addition to awareness spreading out about dependency, marijuana is a welcome alternative for customers. Especially as all the myths about the threats of consuming cannabis continue to get exposed, more people will be drawn to attempt marijuana items.
Last month Canada’s Senate authorized the Cannabis Act making Canada the first G7 country to legalize marijuana nationally. Canada’s freshly elected Prime Minister Justin Trudeau is young at 46 and campaigned hard on legalizing adult-use cannabis. Companies like Canopy and Aphria have made the most of Canada’s brand-new viewpoint on cannabis by developing export relationships with European nations like Germany as well as in Australia for medical cannabis, which may represent an even larger market for these business than Canada.