Canopy Growth CEO talks taking different weed form factors to market
Canopy Growth CEO talks taking different weed form factors to market
Canopy Growth CEO David Klein discussed the Canadian cannabis company’s range of cannabis products and said weed drinks will be “better than seltzers.”
The CEO of a Canadian cannabis company is expecting that the United States is headed for cannabis legalization in the next two years.
David Klein, the head of Canopy Growth, told CNBC’s Jim Cramer on Tuesday that as states continue to gradually permit medical and recreational use of marijuana, Congress will have no choice but to act.
“My assumption is that 2022, for me, is the magic number,” he said in a “Mad Money” interview. “I think, as you watch more and more states move to legalization for medical or rec, you really bring in almost two more senators each time who are really going to feel compelled to not make criminals out of the people in their state who are doing what’s legal in their particular state.”
Klein, the former chief financial officer of alcohol producer and large Canopy stakeholder Constellation Brands, was responding to a question from Cramer about how state and local governments, whose budgets have been severely stretched by the coronavirus pandemic, could legalize the weed business as a way to bring in more revenue. Colorado, which was among the first states to legalize marijuana in 2012, reported collecting $133 million in taxes and fees related to cannabis commerce between January and May.
The industry, however, was locked out of the federal government’s massive coronavirus small business relief program as sales slumped in the month of March in states such as Colorado and Nevada.
Still, American cannabis companies expect that the pandemic will speed up legalization at the federal level after multiple states declared dispensaries essential businesses during the Covid-19 lockdown.
“The revenue opportunity is huge,” said Klein, who heads up a $6 billion company. “I’ve seen some really large numbers in terms of the amount of cash flow that would come into the government as a result of just a normal excise tax regime.”
Marijuana has been legalized in a dozen states and remains fully illegal in 11 others. The remaining states have decriminalized the plant in some form. Cowen forecasts the U.S. cannabis market will be worth about $56 billion in 2020 and all but 10% will be handled on the black market.
Virginia is set to decriminalize simple marijuana possession on July 1 and will be the 27th state to have done so.
“You know, not to mention that it doesn’t make sense that cannabis isn’t legal already,” he continued. “Alcohol prohibition [ended] 87 years ago, and [I’m] not really sure why cannabis was left off that list.”
Klein became CEO of Canopy Growth in December after founder Bruce Linton was forced out by Constellation earlier that year. Constellation Brands invested $4 billion into the business.
Canopy shares rose 6% in Tuesday’s session. The stock price remains down 15% year to date.
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Wish Jimmy chill asked Klein to justify his salary doubling to 1.3 million amid mass layoffs, mounting losses
Cgc stock . Pump and dump.
Grow some weed in your back yard and dump these money losing cannabis scam companies.
Judging by the comments….I can tell ALOT of ya’ll not business minded
When you can’t grow good weed i guess you gotta figure out all kinds of different ways to spin it 😂
These guys just don’t understand weed heads what so ever… Gonna go short !
good luck son
I wouldn’t buy ACB or CGC cause they’re from Canada weed stocks and they’re so cheap to win in next 5 years.
I would buy USA weed stocks called SMG Scotts Miracle Gro and IIPR Innovative Industrial Properties. Those are real USA 🇺🇸 richest weed stocks.
SMG will hit at 175 by next year and will go to 730 in next 5 years!! It doesn’t touch on weed, giving out their dirts, pesticides and sell hyper lights.
IIPR also doesn’t touch on weed too. They own 60 properties that other marijuana companies growing weeds.
Will hit at 175 next year and will hit at whooping 950 in next 5 years.
Buy it for long term!! 👍🏻
NOOOO! Drinks are a STUPID way to consume cannabis. You need to go after the REGULAR USERS, who buy EVERY WEEK!!! Going after the newbie makes you NO MONEY! Who the hell hired this guy?!!?
🤣 0 Calories 0 carbs ..please don’t push that considering THC gives you the “Munchies” haha but I’ll still invest #Retailinvestor #Robinhoodeer
My thought is that eventually it will be federally decriminalized. It might be 5 years from now, but it will happen. I could see this company being huge when it does happen and there is a chance for total North American expansion.
I agree that beginner and casual pot users will prefer non-smoking options, however I don’t agree that drinks will be a big hit. I suspect edibles will gain more traction. Drinks are likely to be seen as less potent versions of alcohol, and most won’t be willing to pay a premium for that.
Capitalism is the worst thing to ever happened to Marijuana. I will never consume Corporate Weed no matter how the package or market it.
2nd
I’ve always heard that cannabis doesn’t mix with water because of the oils. Sproutly claims they have it figured out and had an agreement with Moosehead. Are they ever going to come out with drinks?
Jim please don’t listen to this guy!!! We’ve sold $50,000,000 of pot in the last 10 years, and I can promise you drinks are a TERRIBLE vehicle for Cannabis for SO MANY REASONS!
Please, no artificial tastes, colorings or sweeteners and I’ll try! 😉
Jim smokes Canopy Growth during his Lunch Break
Starting 20 at August 20, 2020.
25 will hit at September 4.
Will reach 250 in next 5 years.
Great to buy long term at under 20!!
YEAH!!!! This is some good shiet!!!
MJ drinks are going to fail and a costly mistake to Canopy long term
Hundreds of millions of people have problems falling asleep around the world. Prescription sleep aids have horrific side effects. Cannabis can be the opposite of coffee. A cup of coffee in the morning to start the day, a Cannabis drink at night to help put you to bed. No hangover and no cloudy feeling in the morning included.
Looks like Mad Money could use some weed. He’s been so uptight lately.
Legal Drug pusher – killing brain cells Alzheimer’s disease by 50 – Jim you know what you can do promoting this guy
CANOPY GROWTH IS A CONSTANT LOSER OF MONEY THAT CANT EVEN BEAT THE BLACK MARKET BECAUSE THEY KNOW VERY LITTLE ABOUT THE WHOLE CANNABIS MARKET
Can’t wait for the drinks!!!
In 5 years $CGC will be a $100+ stock
No one wants to drink weed infused drinks gtfo