Canopy Growth Corp (TSX: WEEED) (NASDAQ: CGC) evidently will be losing one of its brands. It was announced this morning that the firm and Houseplant, a brand the company has been working with for over three years, will be parting ways.
The departure between the two labels appears to be at the election of Houseplant, rather than that of Canopy Growth. The brand, which is commonly referred to as that of Seth Rogen’s, appears to be leaving Canopy as a result of quality concerns of sorts.
The company notes in its announcement this morning its quick success in US markets, stating, “Houseplant launched a line of premium homewares and cannabis products in the United States in March 2021 and has quickly become a cultural and industry leader.” In Canada, results have been much more mixed after three years of operations, with the brand known mostly for the beverage category. The company this morning commented that “the time is right for the Houseplant brand to develop independently.”
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Houseplant products will continue to be available in Canada at certain retailers through the end of September 2021 as products sell down. Products are expected to become available again at some point in the future, although a timeline was not given, with those future products to be more in line with current offerings from the brand in the US.
The company closed the release this morning with commentary from co-founder Seth Rogan, whom stated, “This is not an exit from the Canadian market, but a chance for us to evolve the brand.” That commentary alone suggests there were disagreements between the two entities on how to move forward with product offerings.
Canopy Growth Corp last traded at $23.11 on the TSX.
Information for this briefing was found via Sedar and Canopy Growth. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
