Canopy Growth (NYSE:CGC) has snagged a top athlete to quarterback its efforts to sell comestibles products. At least in a manner of speaking.
The Canadian marijuana company announced on Tuesday that BioSteel Sports Nutrition, the nutritional supplement maker it acquired a 72% majority stake in last October, has signed Kansas City Chiefs quarterback Patrick Mahomes as a "partner," essentially an endorser of the brand.
Canopy Growth and Mahomes claim that the athlete is already a user of BioSteel products, which are cannabidiol (CBD)-based. According to the company, Mahomes -- who led the Chiefs to a Super Bowl victory in February -- had his trainer initially recommend them to him.
Canopy Growth bought BioSteel at a time when acquisitions in the market share-hungry cannabis industry were still relatively frequent. The company didn't disclose the price it paid for the majority stake; similarly, it hasn't revealed the terms nor the financial particulars of Mahomes' "partnership." In addition to nutritional supplements, BioSteel also makes a line of sugar-free sports drinks and related products.
Mahomes will be a sort of wedge for BioSteel to grow on the U.S. market. At the end of July, Canopy Growth unveiled a specialty website, ShopCanopy.com, through which it sells its various CBD brands to American customers. BioSteel is one of the brands featured on the site.
Of its new celebrity endorser, Canopy Growth said that "[a]s a member of Team BioSteel, Mahomes will help increase awareness for the BioSteel brand as it continues to rise within its category and take on the industry's giants."