Canopy Growth Secures BioSteel Partnerships, Closes More Facilities
December 15, 2020Canadian cannabis behemoth Canopy Growth took steps this week to further streamline its operations and cut costs. The company will shutter four facilities across Canada and abandon its outdoor cultivation operation in Saskatchewan. The closures represent 17% of Canopy’s indoor growth capacity and all of its outdoor growing. Approximately 220 employees are being laid off as a result.
“These actions will be an important step towards achieving our targeted C$150-C$200 million ($117m-$156m) of cost savings and accelerating our path to profitability,” said CEO David Klein. “We are confident that our remaining sites will be able to produce the quantity and quality of cannabis required to meet current and future demand. This was a difficult decision but I believe it is the right one.”
In other company news, Canopy recently partnered with two NBA teams to make its BioSteel brand their official sports drink. BioSteel, which markets conventional sports drinks in addition to a CBD option, inked multi-year partnerships with both the Toronto Raptors and the Philadelphia ’76ers, with the brand getting prominent placement at all home games for both teams on a variety of elements including digital signage, chairback logos, pole pad signage, and the players drinking BioSteel on the sidelines.
Canopy’s partnership with Martha Stewart also took a big step forward in recent days. Stewart’s line of CBD products secured shelf space at The Vitamin Shoppe and Super Supplements, whose nearly 600 retail locations will significantly boost the brand’s profile and availability. The stores will carry the complete collection, which includes Martha Stewart CBD 10-mg Wellness Gummies in Citrus Medley and Berry Medley, 750-mg Oil Drops in Blood Orange, Meyer Lemon, and Unflavored, and, at select locations, Special Edition 15-Flavor Wellness Gummy Sampler Box.
Additionally, Canopy Growth’s global head of beverage Andrew Rapsey is leaving the company. He joined in January of this year and assumed his current role in August. Rapsey wrote on LinkedIn that he was returning to Google next year. He will be succeeded by SC Johnson executive Tara Rozalowsky, who will be vice president of beverage and edibles operations.—Danny Sullivan
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