Canopy concludes agreement with BioSteel for CBD sports drink

by Team Inc.

2019-10-02- Canopy signs agreement with BioSteel for CBD sports drink

Canopy Growth Corp. acquires a majority stake in BioSteel Sports Nutrition Inc. The cannabis giant wants to quench the thirst of consumers with a line of cannabis sports drinks.

The deal, in which Canopy acquires a 72 percent stake, represents the company's bet that in addition to being a major cannabis producer, it could also be a major player in the $ 50 billion global sports nutrition market. Financial terms of the deal were not immediately disclosed. Canopy's CEO Mark Zekulin told BNN Bloomberg that the company will bring the established BioSteel brand to the attention of professional athletes. A pink BioSteel sports drink is already in the works, he said.

New line

An image showing several new products from the BioSteel brand, such as drinks, mixes and protein powder with CBD, was released online on Wednesday. Founded in 2009, the popular BioSteel products have been purchased by 70 percent of teams in North America's four major sports leagues. John Celenza, CEO and co-founder of BioSteel, said he has been negotiating with other companies for a possible sale in recent years. After athletes began asking about drinks containing CBD as a natural pain reliever, he began investigating a switch to cannabis.

"We truly believe that CBD will be the next big trend in sports, as with the sugar-free sports drink," Celenza told BNN Bloomberg in a telephone interview. "We think this is a logical next step for us." Talks between the two companies began just over a year ago when Celenza met Canopy executives over drinks at a Las Vegas sports bar.

Cannabis drinks

US regulators are currently investigating whether foods and drinks containing CBD could be harmful to consumers. According to some analysts, the CBD beverage market could grow into a multi-billion dollar market in the coming years. CBD-infused beverage sales will increase from US $ 227 million this year to US $ 1,4 billion by 2023, according to Zenith Global.

However, the US Food and Drug Administration stated that CBD in food and drink remains illegal despite the most recent US Farm Act legalizing hemp. Zekulin said he expects clarity about CBD-infused products soon. “Our business is built on uncertainty,” says Zekulin. “Markets are developing all over the world and there are questions everywhere. Ultimately, the FDA must take action against the myriad of unregulated products already out there. ”

Canopy will also try to integrate BioSteel's extensive distribution network in Canada, Zekulin added. BioSteel is planning to expand to the US and Europe, two major markets in which Canopy wants to invest.

Read more bnnbloomberg.ca (Source, EN)

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