Canopy Growth Corporation produces, distributes, and sells a diverse range of cannabis and cannabis-related products.
The company’s core operations are in Canada, Germany and Australia and it holds a significant non-controlling, non-voting interest in Canopy USA, an entity that participates in the sale of cannabis and hemp derived products in the United States. The company’s branded product portfolio includes multiple cannabis formats, such as dried flower, pre-rolled joints (PRJ), oils, softge...
Canopy Growth Corporation produces, distributes, and sells a diverse range of cannabis and cannabis-related products.
The company’s core operations are in Canada, Germany and Australia and it holds a significant non-controlling, non-voting interest in Canopy USA, an entity that participates in the sale of cannabis and hemp derived products in the United States. The company’s branded product portfolio includes multiple cannabis formats, such as dried flower, pre-rolled joints (PRJ), oils, softgel capsules, infused beverages, edibles including gummies, and topical formats, as well as vaporizer devices designed to meet the needs of consumers worldwide.
The company is permitted to cultivate and sell legal cannabis in Canada. The company supplies medical cannabis products to patients in Canada, Europe, and Australia. The company seeks to continuously develop initiatives designed to help patients and consumers safely, effectively, and responsibly use cannabis.
The company’s initiatives have included activities such as:
A multi-year partnership with Responsibility.org to support the National Alliance to Stop Impaired Driving (NASID) by working together to end all forms of impaired driving through improved data and detection, innovative programs and technologies and system reform.
Supporting The Last Prisoner Project (LPP). Canopy Growth actively works alongside LPP in their goal of freeing the tens of thousands of individuals still unjustly imprisoned for cannabis related incidents/offenses.
The company maintains agreements to supply all Canadian provinces and territories with its adult-use products for sale through their established retail distribution systems and using a consumer-driven approach, it provides a portfolio of diverse products that offer experiences for a wide range of occasions that its consumers seek. The company’s distinct cannabis brands include Tweed (Tweed), 7ACRES, DOJA, Vert, Maitri, HiWay, Twd., Wana (Wana), and Deep Space in the adult-use channel. The company’s primary medical brand is Spectrum Therapeutics and it has also launched Canopy Medical, a medical cannabis brand in select international markets. The company’s curated cannabis product formats include dried flower, PRJ, oil, softgel capsules, edibles including gummies, topicals, vapes and beverages, as well as a wide range of cannabis accessories. The company also offers health and wellness hemp-derived CBD products under its Martha Stewart CBD brand. In addition, the company offers premier herbal vaporizer devices through Storz & Bickel GmbH (or Storz & Bickel, collectively Storz & Bickel).
Strategy
The company aspires to demonstrate how cannabis can be a force to improve lives and communities, and it has defined a clear strategy to bring this ambition to life. The key elements of the company’s strategy include building a brand-driven North American cannabis powerhouse backed by exceptional product quality; delivering best-in-class service to its customers with a purpose-built route to market; leveraging its disciplined asset-light model to manage power growth; and furthering its leadership position with medical cannabis patients worldwide.
Brands and Products
Cannabis Products
The company produces and sells a wide range of cannabis products, including dried cannabis flower, PRJ, extracts and concentrates, beverages, edibles, including gummies and vapes in Canada and other locations where legally permissible to do so. The company’s cannabis products are sold both in the direct-to-patient markets for medicinal use, as well as in the adult-use market following the enactment of the Cannabis Act in Canada and the amendments thereto which provided for the legalization and regulation of cannabis products beyond cannabis flower and cannabis oils, to include products, such as beverages, edibles, including gummies and vapes (collectively, Cannabis 2.0).
The company’s cannabis products include:
Dried Flower: The company prides itself on growing high-quality cannabis, which is packaged for sale as dried flower and PRJ. The company sells dried flower and PRJ in both the medical and adult-use markets. Dried flower continues to be the core of all cannabis markets globally and accordingly the company’s focus on consistent high quality cultivation is relentless. Further, as the PRJ category gains further momentum based on the convenience of consumption for these products, the company will continue to seek an active role in the category’s growth through non-infused and infused PRJ products.
Extracts and Concentrates: This category includes softgel capsules which offer a convenient, precise, and discrete dosing solution for those interested in consuming their cannabis in pill form and are available in a variety of concentrates, from micro to full doses.
Cannabis Beverages: The company offers its beverages in a variety of flavors and sizes under the Deep Space, Tweed, and 7ACRES brands. Cannabis-infused beverages that offer sophisticated taste and measured doses with a rapid onset and shorter duration can be tailored to meet specific outcomes across a variety of consumption occasions. The company continues to believe that beverages represent a critical element of the long-term future of the industry and a key product category for new-to-cannabis consumers. Regulatory advancements, including the permissibility of on-premise consumption, is expected to advance this category significantly.
Cannabis Edibles: This category includes a range of ingestible products, including gummies. The company is the exclusive Canadian licensees of the Wana gummies, one of North America’s leading cannabis edible brands. Wana prides itself on consistency, quality, and cannabis-free taste in addition to a range of products with accelerated onset. Wana gummies are available in a range of cannabinoid ratios and values, and class-specific terpene formulations. Products offer a discreet and dosable cannabis experience and are available in a variety of flavors and sizes. Canopy Growth continues to view the edibles category as one of the major long term growth drivers within the cannabis industry.
Cannabis Vapes: The company’s vapes are designed to bring effective and reliable technology to the vaping category. The company’s 510 vape concentrate cartridges and all-in-one vape devices are available in a variety of Tweed and 7ACRES strains, with a range of THC and CBD levels. The company’s vapes are tamper-resistant, adhere to Health Canada’s regulations and it is continually reviewing and testing all inputs to ensure the highest quality and reliability of cannabinoids, terpenes and tamper-resistance features. The company’s vape cartridges are tested to the FDA standard for leachability to ensure the reduction of heavy metals and contaminants leaching into the extract. The company’s all-in-one vape products are produced using UL 8139 Certified Safe Manufacturing standards which evaluates the safety of the integrated systems of a vape device and safety features and mechanisms that protect the user from harm when using the device. UL also has a standard for battery cells in isolation known as UL 1642 and all of its vape battery cells are certified to this standard.
Vaporization Devices: Storz & Bickel medical cannabis vaporizers are registered in Australia, Canada, the European Union, Israel, Switzerland, and the United Kingdom and meet the country specific requirements, including but not limited to, electrical safety, biocompatibility, usability, as well as clinical performance and general safety. The Storz & Bickel dry herb vaporizers are crafted with the same attention to performance and safety as their medical devices and they undergo rigorous manufacturing procedures and are either TÜV Süd-certified or UL listed (UL8139).
Hemp-Derived CBD Products
The company’s branded, hemp-derived CBD products that have been brought to market in certain U.S. states where not prohibited under state law include the Martha Stewart CBD line of hemp-derived CBD isolate products, including gummies, oils, softgels and topicals launched initially in September 2020.
Developed as a result of the company’s investments in technology and testing, these CBD products were created by extracting and isolating derivatives from the hemp plant to produce consistent CBD formulations that are packaged in easy-to-use formats. Martha Stewart CBD products are manufactured in the U.S., contain 99% pure CBD isolate and less than 0.3% THC. The company is committed to selling high-quality, tested and reliable products. In the absence of any federal guidance in the United States on CBD-derived products, the company has only sold its products in U.S. states where such sales are permissible under state law in order to ensure compliance with state consumer protection mandates and following the most stringent state laws regarding the sale of CBD.
Devices and Delivery Technology
In addition to the vape pens and cartridge products that the company offers in the legal cannabis market in Canada, through Storz & Bickel it manufactures and sells medical cannabis vaporizer devices, as well as dry herb vaporizers for recreational purposes. Storz & Bickel operates in an internationally certified facility dedicated to manufacturing medical devices. The certified medical vaporizers and dry herb vaporizers are exported to over 100 markets around the world. Storz & Bickel holds registrations to sell their medical devices Volcano Medic 2, Mighty Medic, and Mighty+ Medic in Australia, Canada, the European Union, Israel, Switzerland, and the United Kingdom. On October 17, 2023, Storz & Bickel unveiled the Venty, an innovative, portable vaporizer for dry herbs. Its newly designed convection and conduction heater, as well as the cutting-edge heating management and cooling technology enhance flavor to produce superior vapor quality on the go. The Venty successfully underwent conformity assessment procedure for CE certification in the European Union and is UL listed (UL 8139).
Brand Portfolio
The company’s diverse brand portfolio makes it possible for it to effectively reach different audiences of consumers who newly or consistently use cannabis for a variety of needs and occasions throughout their day. The company’s portfolio includes brands that it owns, as well as brands that it licenses from others, referred to as its Affiliated Brands below:
Cannabis Brands: Tweed is the company’s flagship cannabis brand that proudly offers a wide range of easy to enjoy cannabis products across dried flower, pre-rolls, vapes, oils, softgels, and beverages.
7ACRES is a cannabis brand that appeals to the senses through thoughtfully selected aromatic cultivars and experiences. Offerings include flower, pre-rolls, vape, beverages and concentrates.
DOJA is a brand born amid the natural beauty of British Columbia’s Okanagan Valley, and grown with care for true to plant experience. Offerings include dried flower and pre-rolls.
Deep Space is a line of bold-flavored cannabis-infused soft drink beverages adding rocket-fuel to space adventure with the maximum allowed 10mg THC per can. Deep Space Propulsion offers 10mg THC, 10mg CBG and 30mg of naturally occurring caffeine per can.
HiWay is a value brand that offers a variety of products, including dried flower, pre-rolls, and vapes at a convenient price point and level of trusted quality that the company’s consumers rely on.
Maitri is a Québec-centric brand focused on expertly-cultivated cannabis strains that are dominant in THC.
Twd. is a simple brand with affordable, high-quality options that make shopping for cannabis easy. Offerings include flower, pre-rolls and oil.
Vert is a cannabis brand tailored for Québec - focusing on lower THC, balanced THC:CBD and minor cannabinoids. Offerings include flower, beverages and pre-rolls.
Spectrum Therapeutics is the company’s brand of medical cannabis products designed to optimize the therapeutic benefits of medical cannabis as prescribed by a medical practitioner. Branded products include cannabis oils, softgels and dried flower. Spectrum Therapeutics is also an e-commerce, multi-brand platform within the Canadian medical cannabis market.
Canopy Medical is a leading pharmaceutical manufacturer for the production, import and release of medical cannabis products in Europe. Canopy Medical is committed to developing and delivering world-class medical cannabis solutions for patients to improve their quality of life through innovative and high-quality products. Medical cannabis formats sold within the Canopy Medical cannabis brand today include dried flower and oil extracts.
Consumer Packaged Goods Brands
Based in Tuttlingen, Germany, Storz & Bickel are designers and manufacturers of medically approved herbal vaporizers, most notably the Volcano Medic and the Mighty Medic.
Affiliated Brands
Combining gourmet flavors with state-of-the-art CBD, Martha Stewart’s gummies offer elevated taste for the CBD consumer.
Wana is one of North America's leading edibles brand that prides itself on consistency, quality and seriously great tasting gummies.
Operations
Canadian Operations
Adult-Use
The company’s cannabis cultivation operations are focused in two facilities, its hybrid greenhouse facility in Kincardine, Ontario and the DOJA greenhouse facility in Kelowna, British Columbia. The receipt of EU-GMP certification at the Kincardine facility enables the company to continue exporting certified medical cannabis to medical markets in Europe, as well as other medical cannabis markets around the world. The company’s licensed operational capacity in Canada includes advanced manufacturing capability for oil and softgel encapsulation, PRJ (infused and non-infused), and hash production, which is primarily completed at its Smiths Falls, Ontario manufacturing facility. Through its in-house manufacturing capabilities of cannabis products, the company can process and package bulk cannabis flower, whether internally or externally sourced, into high-quality cannabis flower products. The company’s remaining products are manufactured through an adaptive third-party sourcing model for all cannabis beverages, edibles, and extracts.
Medical
Direct-to-Patient: Under the Cannabis Act, license holders are able to sell medical cannabis through the mail to registered patients. Through the Spectrum Therapeutics website, patients who have registered with Spectrum Therapeutics are able to purchase products online and have them shipped directly to the address indicated on their registration document.
Access: The company has developed several programs to improve access to medical cannabis for authorized patients. The company has multiple offerings for Veterans of the Canadian Armed Forces, including a team of customer care agents dedicated to assisting Veterans with registration, ordering and insurance coverage; pre-approval and direct billing of Veterans Affairs Canada (VAC) to ensure uninterrupted access to medication; full coverage (through VAC) of all cannabis products offered in its online Spectrum Therapeutics medical shop, which means that Veterans do not have to pay out of pocket for any product; and can access special offers on its Storz & Bickel devices. The company also provides support through its customer care team to help patients identify if their medication is covered under the growing number of private health plans that have a medical cannabis component.
In its effort to promote brand recognition and awareness without advertising its products directly to the public, the company works closely with patient educators of specialty medical cannabis clinics and continues to hold community events (to the extent allowable within the regulatory environment) in order to build relationships and provide awareness on the Spectrum Therapeutics offerings.
Global Operations
To support Canopy Growth’s continued push toward profitability, and to continue to seize growth opportunities in the global markets the company understands are ‘next up’ for legalization, Canopy has reduced investment and concentrated its operational footprint in incubator markets in favor of using its resources to broaden partnerships in markets where Canopy can operate via partners with local expertise with an asset-light approach, and grow its global branded and medical cannabis portfolio profitably, in year one and onward.
Europe
The company’s Canopy Medical and Spectrum Therapeutics brands continue to serve the medical market in Europe with operations in Germany, the Czech Republic and Poland. The company’s European medical cannabis business operates in accordance with the specific regulatory framework in place in the relevant jurisdictions, including supplying EU Good Manufacturing Practices (GMP) compliant pharmaceutical products. Canopy Growth’s corporate office for the European market is in Sankt Leon-Rot, Germany. Further, the corporate offices and production facility of Storz & Bickel are located in Tuttlingen, Germany.
Australia
In 2018, the company launched its Australian operations and Spectrum Therapeutics began selling medical cannabis to doctors prescribing its products. Spectrum Therapeutics continues to support Australian medical patients through imported products.
Additionally, the company included the Storz & Bickel medical devices on the Australian Register of Therapeutic Goods in 2019, as well as notifying Medsafe on the Web Assisted Notification of Devices database in New Zealand. As a medical device, Canopy Growth has also received a tax exemption in Australia for the Storz & Bickel range of medical devices.
Credit Facility
Government Contracts
In Canada, the company sells cannabis and cannabis products to cannabis control authorities in all of the provinces and territories in Canada (other than Saskatchewan), where each such cannabis control authority is the sole wholesale distributor and in certain provinces, the sole retailer, of cannabis and cannabis products in the relevant province. The company sells these products to the various cannabis control authorities under supply agreements that are subject to terms that allow for renegotiation of sale prices and termination at the election of the applicable cannabis control authority.
Segments
The company operates through Canada cannabis, International markets cannabis, and Storz & Bickel segments.
Canada cannabis - includes the production, distribution and sale of a diverse range of cannabis, hemp and cannabis-related products in Canada pursuant to the Cannabis Act.
International markets cannabis - includes the production, distribution and sale of a diverse range of cannabis and hemp products internationally pursuant to applicable international legislation, regulations and permits. Priority markets include medical cannabis in Australia and Europe where the company offers branded high-quality flower, oil and extract products under its recognized Spectrum Therapeutics and Canopy Medical brands, as well as its Storz & Bickel line of medically approved vaporizers in Australia.
Storz & Bickel - includes the production, distribution and sale of vaporizers and accessories.
Canada Cannabis
Canadian Medical Cannabis Market
The company is committed to science-based development and production of medical cannabis products and are equally committed to helping medical professionals responsibly authorize, and consumers to responsibly use, its products.
The company’s Spectrum Therapeutics medical brand is a leader in medical cannabis. Spectrum Therapeutics produces and distributes a diverse portfolio of medical cannabis products to healthcare practitioners and medical customers in Canada. The sale of medical cannabis to patients in Canada is the only sales channel in which the company is permitted to sell products directly to its consumer. Accordingly, the company continues to invest in patient education, medical practitioner support and its broader medical cannabis network, solidifying its position as a trusted leader in the Canadian medical cannabis market. The company serves the needs of medical patients through a wide range of cannabis products across a variety of brands, formats and strains, distributed through an e-commerce shop.
The company has several other programs to improve access to medical cannabis for authorized patients. The company also offers support for its Veterans of the Canadian Armed Forces, including a team of customer care agents dedicated to assisting veterans with registration, ordering, pre-approval and direct billing to Veterans Affairs Canada (VAC) to ensure uninterrupted access to medical cannabis, full coverage for vaporizer devices and topped-up coverage for any Spectrum Therapeutics medical cannabis product that VAC covers.
Canadian Adult-Use Market
The company has aligned its infrastructure to match market growth projections and it focuses on leveraging its capabilities and scale in order to optimize its operating footprint and achieve profitability and growth. The company’s strategy in Canada includes:
Continuing the launch of its portfolio of innovative, consumer-centric, premium-focused adult-use cannabis products, specifically: inhalable cannabis (whole and pre-rolled flower, vape and concentrates), ingestible cannabis (e.g. edible formats like Wana gummies, as well as Tweed and Deep Space beverages) and cannabis extracts (predominantly oils and softgels) across Canada.
Strengthening the company’s connection with consumers by offering brands and products that delight and drive consumer loyalty.
The company continues to monitor the developing legislation to identify opportunities for its brands.
International Markets Cannabis
European Medical Cannabis Market
The company’s primary strategy in the European medical cannabis market is to increase access to its medical cannabis products for patients in countries where it is legally permissible to do so, and to position itself as a trusted market leader.
In addition to Canada, Spectrum Therapeutics produces and distributes a diverse portfolio of medical cannabis products to healthcare practitioners and medical patients in several other countries where it is legally permissible to do so. Through its Spectrum Therapeutics and Canopy Medical brands, the company’s strategy supports sales through its medical channels in Europe.
Australian Medical Cannabis Market
The company continues to develop the Australian market by focusing on an asset-light model which emphasizes contractual relationships with third-parties for raw materials. Canopy Growth also provides raw material supply from the company’s facility in Kincardine, Ontario, Canada. Medical cannabis patients in Australia can access its global Spectrum Therapeutics brand, as well as its Storz & Bickel line of medically approved vaporizers. The company’s strategy encompasses continuing the medical sales that began in Australia in May 2019 and supporting Australian patients through imports that are compliant with local regulations including an assortment of cannabis products, including oils, soft gels and flower.
Storz & Bickel
Storz & Bickel is widely recognized as the global leader in vaporizer design and manufacturing. From the brand’s home base in Tuttlingen, Germany, Storz & Bickel sets the standard for vaporizer excellence across a range of premium devices, including the iconic tabletop Volcano vaporizer as well as a range of portable devices offering the same high-quality experience delivered by the Mighty, Mighty+, Crafty+, and Venty.
As a further testament to the brand’s relentless focus on quality and consistency, the Storz & Bickel Volcano Medic 2, Mighty Medic, and Mighty+ Medic are all certified as medical cannabis vaporizers, and all the brand’s devices for medical, as well as home use are produced with the same rigorous quality control processes at the company’s ISO 13485 certified factory.
U.S. Adult-Use Market
The company’s Martha Stewart branded line of hemp-derived CBD isolate products, including gummies, oils, softgels and topicals launched in 2020 in certain U.S. states where not prohibited by state law. Developed as a result of the company’s investments in technology and testing, these CBD products were created by extracting and isolating derivatives from the hemp plant to produce consistent CBD formulations that are packaged in easy-to-use formats. The company’s Martha Stewart products are manufactured in the United States and contain 99% pure CBD isolate and less than 0.3% THC.
Canopy USA
Canopy Growth’s U.S. cannabis ecosystem, which was transferred to Canopy USA, a special purpose vehicle, has an established presence across large-scale and rapidly developing adult-use markets. Collectively, this footprint spans 23 states: Arizona, Arkansas, California, Colorado, Connecticut, Florida, Illinois, Maine, Maryland, Massachusetts, Michigan, Missouri, Mississippi, Nevada, New Hampshire, New Jersey, New Mexico, New York, Pennsylvania, Ohio, Oklahoma, Oregon and Vermont, as well as Puerto Rico.
Canopy USA holds the following interests in the U.S. cannabis sector, among others:
Acreage – Canopy Growth retains the Acreage Option to acquire all of the issued and outstanding Class E subordinate voting shares (the Fixed Shares) of Acreage, which represents approximately 70% of the total shares of Acreage. Acreage’s portfolio also includes high-impact, quality brands like Superflux, as well as the Prime medical brand in Pennsylvania, and the Innocent brand in Illinois, among others.
Wana – The options (the Wana Options) to acquire 100% of the membership interests of Mountain High Products, LLC, Wana Wellness, LLC and The Cima Group, LLC (collectively, Wana), a leading cannabis edibles brand in North America, were transferred to Canopy USA. Wana is vertically integrated in Colorado and has a rapidly growing licensing division across 13 additional states, as well as Puerto Rico. With a scalable business model, Wana has built a dominant position in the gummies category, which is the largest segment within edibles. Backed by a robust pipeline of new consumer focused products, Wana is entering new markets to capture consumers looking for high-quality products that deliver against desired need states.
Jetty – The options (the Jetty Options) to acquire 100% of the shares of Lemurian, Inc. (Jetty), a California-based producer of high-quality cannabis extracts and pioneer of clean vape technology, were transferred to Canopy USA.
In addition, Canopy USA controls a conditional ownership position of approximately 18.1% in TerrAscend Corp. (TerrAscend), a prominent North American cannabis operator with vertically integrated operations and a presence in Pennsylvania, New Jersey, Michigan and California, as well as licensed cultivation and processing operations in Maryland.
History
The company was incorporated in 2009. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in 2015.
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