Canadian Cannabis 2.0 legalization took place in October. Dec. 16, 2019, is the first day that provinces can legally begin ordering edibles, extracts and topicals (EETs) from federally-licensed producers (LPs). Cannabis Licensed Producers (LPs) are gearing up to ship their first big shipments. Here are the three cannabis 2.0 giants that will lead Cannabis 2.0 product rollout.
Auxly (TSX-V: XLY)
Auxly announced last week that it has entered into an agreement with every Canadian province (except Quebec) to commence sales of cannabis 2.0 products (extracts, edibles and topicals) and has secured in excess of 250 listings in the aggregate for its vape, chocolate and chewable products across nine provinces. This is believed to be the most cannabis 2.0 products produced by a single licensed producers. Auxly will be ready to sell vapes, chocolates and chewables beginning December 16 when the sale of those products becomes legally permitted. This development, following the Company’s submission to Health Canada of new product notifications for 83 derivative cannabis products. These new product formats will be added to the oil-based products in bottle and spray formats that the Company recently began shipping for sale in certain provinces, all of which are produced at Auxly’s wholly owned, state-of-the-art, 52,000 square foot facility, Dosecann.
Aurora Cannabis (NYSE: ACB)
Aurora Cannabis has announced they will be coming out with a line of vapes and cannabis-infused edibles which will include mints, chocolates, and gummies among others.
“Aurora’s Product Development and Insights teams have done tremendous work to formulate new products in a variety of formats that we think will exceed consumer expectations and drive category growth,” Terry Booth, Aurora Cannabis CEO
According to Booth, by mid-December, as soon as they become legal to sell, Aurora’s new line of edibles will be available to consumers.
“We are ready to ship product as soon as the regulations allow and are excited for consumers and patients to finally have access to a greater selection of product forms. We are already working on expanding the range of new products beyond those that will initially launch,” he added. (Insauga)
Canopy Growth (NYSE: CGC)
Canopy Growth Corp. said it will start with beverages, edibles and vapes and plans to roll out 32 specific items by end of December, and add 20 more over the following 12 months. (Vancouver Sun)
The Company expects that in most markets new products will not be seen on shelves until early in January 2020. Leveraging learnings from Cannabis 1.0, the Company will stagger its launch of various products and formats to ensure a smooth roll-out. As such, availability will vary by province based on their individual ordering and distribution activities.
Canadian Cannabis 2.0 Market Size
Deloitte’s recent research report “Nurturing new growth,” said that edibles and extracted products will dominate the Cannabis 2.0 market. According to the estimates:
- the Canadian market for edibles and alternative cannabis products will be worth 2.7 billion Canadian dollars
- edibles will be worth 1.6 billion Canadian dollars
- cannabis-infused beverages will be worth 529 million Canadian dollars
- topicals will be worth 174 million Canadian dollars
- concentrates will be worth 140 million Canadian dollars
- tinctures or liquid extracts will be worth 116 million Canadian dollars
- capsules will be worth 114 million Canadian dollars
Health Canada established Dec. 16, 2019, as the first day that provinces can legally begin ordering edibles, extracts and topicals (EETs) from federally-licensed producers (LPs).
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