Canopy Growth's Chief Product Officer On How COVID-19 Accelerated Cannabis Demand
The COVID-19 pandemic accelerated demand for tools to cope with stress management and anxiety, Canopy Growth Corp (NASDAQ:CGC) President and Chief Product Officer Rade Kovacevic said Friday during Benzinga's Cannabis Capital Conference.
Cannabis And Stress Management: It goes without saying that rising anxiety is a trend that was seen worldwide, and this created new opportunities for both the cannabis industry as a whole and Canopy Growth, Kovacevic said during the virtual Benzinga conference.
He called Canopy's Storz & Bickel the "gold standard" for luxury cannabis goods and said the brand benefited from consumers demanding the best product to help cope with never-ending Zoom meetings and life at home.
The CBD space is perhaps best known for its stress management characteristics, so sales were naturally higher throughout 2020, Kovacevic said.
"Stress management and relief anxiety were always a trend in our busy world — just the cause of that stress has changed somewhat."
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The Evolution Of The US Cannabis Market: Another trend that played out in 2020 was a growing acceptance of CBD products in the United States, he said.
Approximately 86% of consumers are familiar with CBD products; one-third can name a brand that operates in the space; and only 18% have tried one, the Canopy exec said.
This creates an opportunity for a company like Canopy to take advantage of the fragmented market by offering "approachable products that make people feel comfortable," Kovacevic said.
The market is ripe for expansion, and Canopy's collaboration with a well-known celebrity like Martha Stewart will translate to new sales, he said.
"People were curious [and] everyone has heard about Martha — she has trust around wellness."
Canopy's Canadian Roots: Canopy's roots in Canada date back around seven years, and Kovacevic said this is a long time by cannabis standards.
The company can leverage the data and insights it collected over the years and apply them to the U.S. CBD market, he said.
Canada's first-mover status allows Canopy to evaluate the success of various products and strategies before bringing them to the larger U.S. market, the chief product officer said.
Kovacevic On 'Total Mood Management': Canopy's philosophy moving forward is to offer a "total mood management" portfolio with specific products designed for unique occasions.
Cannabinoid products have many use cases, from getting high to wanting to relax without feeling sleepy and everything in between, he said.
"I think that's the future of being able to look at the products and how to deliver on that exact mood that a consumer is looking for," he said.
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