Shares of Canopy Growth (CGC) - Get Report were wavering Tuesday after the Canadian cannabis company unveiled a deal under which Southern Glazer's Wine & Spirits will distribute its cannabidiol-infused beverages in the U.S.
The deal follows the recent launch of Quatreau, Canopy's first line of CBD-infused sparkling-water beverages in the U.S. market.
Canopy "will leverage Southern Glazer’s established distribution network to bring our CBD beverage portfolio to retailers and consumers across the U.S. market,” said Julious Grant, Canopy's chief commercial officer.
Canopy Growth shares at last check were off 0.7% at $25.39.
Closely held Southern Glazer's, Miami, will distribute Canopy Growth's CBD beverages, starting with Quatreau, across seven states with plans for additional states in coming months.
"Innovation in the beverage industry like we are seeing from Canopy Growth brings new energy to the marketplace and increases the level of consumer interest in all our products,” added John Wittig, chief commercial officer at Southern Glazer’s Wine & Spirits.
Quatreau will be the first CBD-infused beverage in the Southern Glazer’s portfolio.
Canopy Growth, Smith Falls, Ontario, has unveiled a couple of acquisitions this month, completing its acquisition of Ace Valley and agreeing to buy Supreme Cannabis for C$435 million.
Via the Supreme deal, the companies said, Canopy acquires a top premium brand, 7Acres.
“Brand growth is anticipated with distribution supported by Canopy's robust sales and distribution network as well as superior consumer insights and research-and-development capabilities,” they said.
The deal is expected to close in June, subject to conditions including regulatory clearances, court approval, and a vote of Supreme Cannabis holders.
Cannabidiol is derived from the hemp plant, a relative of the marijuana plant. It does not produce the high that marijuana does.