Canopy Growth Rebrands In Germany, Here's Why

Canopy Growth Corporation's CGC WEED subsidiary, Canopy Growth Germany GmbH announced on Wednesday that the company is changing from Spectrum Therapeutics to Canopy Medical in the German market.

Why It Matters

The move will align the company's medical business with the corporate Canopy Growth brand.

Moreover, this alignment further reinforces Canopy Growth's commitment to long-term growth within the German medical cannabis market and unwavering commitment to German medical cannabis patients, the Canadian cannabis giant said in a press release.

Tara Rozalowsky, chief growth officer and president of international markets at Canopy Growth said the decision "represents a visual demonstration of our leadership position in this priority market, as well as Canopy Growth's growing strength within the international medical cannabis industry."

In an interview with Benzinga's Nina Zdinjak, Rozalowsky called cannabis "a must-win industry." Being a CPG expert, she joined the Canopy team in 2020 as the company's vice president of marketing.

"Since then, my role has been instrumental in developing, launching, and enhancing products and brands across Canopy's portfolio," she said.

What's Next

The rebranding to Canopy Medical will be phased in so that customers and partners as well as consumers and stakeholders can continue to benefit from the highest quality products and services.

Medical cannabis patients should experience no change in service during the transition, Canopy said.

See Also: Canopy Growth Divests Its CBD Subsidiary To European Pharma Co. For 80M Euros

In Germany, Canopy Growth, Aurora, Tilray, CannaMedical and Four20 Pharma accounted for more than 70% of the German flower medical cannabis market over the past year, said cannabis analyst Pablo Zuanic who will join other top executives and entrepreneurs at the upcoming Benzinga Cannabis Capital Conference in Chicago as a speaker.

Moreover, Germany is expected to be among the world's largest recreational cannabis markets due to its population of nearly 84 million people, the most populated country in the European Union.

Germany's cabinet approved the marijuana legalization bill in August, sending it to the legislature for consideration. The draft legislation backed by Chancellor Olaf Scholz would legalize recreational cannabis use and personal cultivation of up to three plants, allowing adults to possess as much as 25 grams of weed, and would also enable buying weed at marijuana clubs.

Q1 Earnings

Meanwhile, Canopy Growth reported first-quarter sales of CA$109 million ($81.2 million), which beat the analyst consensus estimate of CA$67.98 million, a 26.32% increase over CA$86.29 million in the same period last year.

Canopy Growth's CEO David Klein, who is also a speaker at the upcoming Benzinga event in Chigaco, commented on earnings results. He said the company is moving toward profitability despite the challenges facing the cannabis industry, including reducing costs by $47 million during the latest quarter.

CGC Price Action

Canopy's shares traded 3.4806% higher at $0.7076 per share at the time of writing on Wednesday.

The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this Sept 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.

Photo: Beniznga edit of images by Paul Einerhand and Diego PH on Unsplash