Canada's largest licensed cannabis producer and its U.S. affiliate on Thursday revealed plans to launch THC-infused beverages in the U.S. market. Encouraged by recent beverage sales in Canada, Canopy Growth (CGC -7.01%) and Acreage Holdings (ACRGF) say they intend to bring similar options to U.S. consumers next summer.
Canopy Growth began shipping THC-infused beverages in Canada under the Tweed brand this spring. So far, the company has five of the top six performing products in the category there, and would like to achieve similar success in the U.S. with some help from what will eventually be its U.S. subsidiary, Acreage Holdings.
Acreage Holdings operates 27 marijuana dispensaries in the U.S. and has licenses it could use to open at least 40 more. In addition to selling Canopy Growth's THC-infused beverages in stores operated by Acreage, the partners plan to leverage Canopy's relationship with Constellation Brands (STZ -0.70%) to distribute them.
Canopy Growth's efforts to market cannabis-infused beverages haven't paid off for its shareholders yet. During its fiscal first quarter, which ended June 30, the company lost 128 million Canadian dollars and reported just CA$110 million in revenue.
Given the magnitude of those losses, North American beverage sales aren't likely to be enough to stop the financial bleeding in the foreseeable future. Since this spring, the company has only sold 1.7 million cans of cannabis-laden soda water at around CA$4 per can. Also, at just 2 mg of THC per can, there just isn't much for consumers to get excited about. Standard edible dosages start at 10 mg -- a serving size most experienced cannabis users still consider ineffective.