Taking A Bite Out of The Cannabis Edibles Market


Ryan Allway

June 24th, 2019

App, Exclusive, News, Top News


Cannabis edibles and beverages have more than doubled their share of the overall cannabis market since 2011, according to data from ArcView Market Research and BDS Analytics, with revenue projected to grow from $1 billion in 2017 to $4.1 billion by 2022.

Consumer appetite for edibles also appears to be rising as people seek out ways to consume cannabis without smoking it. According to a Dalhousie University survey, 46% of people are willing to try cannabis-infused products when they become commercially-available and a full 93% of people favoring cannabis legalization were open to trying an edible product.

These dynamics have started to draw the attention of blue chip companies around the world. For instance, Constellation Brands Inc. (NYSE: STZ) shelled out $4 billion for its stake in Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) and Anheuser Busch Inbev NV (NYSE: BUD) partnered with Tilray Inc. (NASDAQ: TLRY) to research THC and CBD drinks.

Let’s take a look at some of the biggest innovators in the space and some of the key challenges facing the industry as edibles go mainstream.

Who Are the Biggest Innovators?

There are many companies involved in the cannabis edibles space, but there are a few companies that have built a reputation in the emerging space.

TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) provides branding, transportation and distribution services through a wholly-owned network of California subsidiaries. The company recently signed an LOI to acquire the business and assets of SolDaze. SolDaze is a CBD/THC organic mango cannabis infused snack line conceived in Santa Cruz, California. The infused natural edible is low in sugar, and tastes like a healthier version of dried fruit. The tropical mango bites and the mango strawberry bites won best edible at the 2018 Emerald cup. Mangoes are packed with myrcene, a terpene that interacts with THC, making this cannabis edible a match made in heaven.

Click here to receive additional investor information on TransCanna™

 

Sublime Canna is a leading cannabis manufacturing and distribution firm in California with an award-winning line of vape cartridges and pre-rolls. When developing an edibles product, the company sought out a discreet and easy-to-use product format. The team recently launched Dosies, a cannabis mint that contains just 2 milligrams of THC, to empower consumers to fine-tune the experience that they want or microdose throughout the day.

The company’s sugar panned cannabis mints are only the beginning of what’s to come after the company brought on LJ Buffardi as its Vice President of Edibles Development. Prior to joining the company, Mr. Buffardi, along with his family members, sold Ferrara Candy to Ferrero, the Italian maker of Nutella and Tic Tacs. Next up is a THC-infused Sublime ice pop, that will be launching in July. Each ice pop will include 10 milligrams of THC.

Click Here to watch Sublime Canna CEO Alex Fang’s Executive Video Interview

Click here to Receive Additional Investor Information on Sublime Canna

 

Other companies are focused on private label contract manufacturing rather than developing their own brands. FinCanna Capital Corp.’s (CSE: CALI) portfolio company QVI Inc. is building a state-of-the-art production facility to produce edibles, topicals, tinctures, chocolates, hard candies, gummies, beverages and other products on a contract basis for licensed cannabis cultivators and brands — all under a single roof.

FinCanna is a royalty company that provides growth capital to rapidly emerging private companies operating in the licensed U.S cannabis industry. The Company earns its revenue from royalties paid by its investee companies that are calculated based on a percentage of their total revenues.

Click here to Receive Additional Investor Information on FinCanna Capital Corp.

What Are the Key Challenges?

The edibles industry must overcome some key hurdles before products reach mainstream consumers around the world.

The regulatory uncertainty surrounding the industry has caused some issues. In the U.S., the FDA is in the process of reviewing the status of CBD as an ingredient in foods and beverages, and it could decide to restrict its use. In Canada, the government is expected to legalize edibles and beverages later this year, but for now, consumers are limited to cannabis flower and concentrate products. Packaging and labeling regulations are also in a state of flux.

Cannabinoid metabolism could also pose a challenge for the industry. Unlike alcohol, cannabinoids are fat soluble, which means that there’s a slower on-set and potentially undesirable taste issues. Microemulsions and nanoemulsions could help solve some of these issues, but they come with their own set of issues, such as shelf life, taste, stability and predictability — there’s still a lot of work to be done on delivery systems.

Finally, many smaller companies in the space could face stiff competition from larger competitors. As these concerns clear up, there are many large companies that are likely to enter the space in a big way. Coca-Cola Co. (NYSE: KO) has reportedly expressed interest in CBD-related beverages, while many alcohol companies have already started to make strategic moves designed to capitalize on the potential for THC beverages.

Looking Ahead to What’s Next

Cannabis edibles and beverages could become a huge market segment over the coming years. Investors looking at the cannabis industry should consider adding exposure to their portfolios to diversify away from simply holding cultivators and dispensaries. Despite the significant potential, there are several key risk factors that investors should consider when looking at companies with ambitious plans in the space.

For more information please visit Transcanna™

For more information please visit Sublime Canna

For more information please visit FinCanna Capital Corp.

For additional details on FinCanna’s disclaimer and Forward Looking Statements please visit:

https://www.fincannacapital.com/corporate/forward-looking-statement/

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation:http://www.cannabisfn.com/legal-disclaimer/

Ryan Allway

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


Network Partners

Follow Us on Social Media

About CFN Media

CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.

CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.

Learn How Your Company can Be Covered on CFN Media

Learn More About the CFN Media Sponsored Content Program

Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.

Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer

loading