Some of Canada’s most popular cannabis brands are American
It’s been three years since Canada legalized adult cannabis, and some of the most popular brands on the market are already south of the border.
In August, Colorado-based Wana Sour Gummies held 38% of the edible market, according to HiFyre. And Bhang chocolate, the award-winning California edible brand, is one of the best-selling cannabis-infused chocolates in the country.
Both brands also regularly dominate Headset’s bestseller lists, breaking sales data from Ontario, British Columbia and Alberta.
Of course, products are not shipped across the border between legal states and Canada. Instead, they make their way to Canadian customers via license agreements.
Canadian companies buy the rights to use the American intellectual property and genetics, and then manufacture and package in accordance with Canadian regulations.
So the Californian cookies made their way north: Led by rapper Berner. Cookies Canada started out in Ontario with two cannabis strains: Gary Payton and Georgia Pie, both of which sold out within a few days.
And Colorado-based beverage company Keef, which makes infused sodas like Bubba Kush Root Beer, was recently launched in Canada. The result of Stigma Grow’s partnership with BevCanna to bring the infused drinks to market.
But are there any differences between what is sold in American markets and what is available on Canadian shelves? And why are some so popular? Leafly took a closer look.
Start with a bhang
When London, Ontario-based Indiva signed its first licensing deal with Bhang in 2018, President and CEO Niel Marotta said there were some doubts about the idea.
“We had a lot of people saying why would you license a brand? Nobody knows the brand name. Anyone can just put cannabis in chocolate, ”he said in a phone call. “But we knew better. That’s just not true. “
With a background in the capital markets, not cannabis processing, Marotta said Canadian consumers are used to US brands coming out. And if customers loved Bhang in Colorado and California, he thought they’d probably love it in Canada too.
So far he’s been right.
Despite her US brand roots, Marotta still considers the products to be Canadian. He attributes the success of Bhang and Wana not only to the US brands who developed the recipes, but also to the production and office workers in Canada, who were able to meet demand quickly and consistently.
Packaging aside, which has much more stringent restrictions on Canadian labels, one of the most obvious differences between American edible brands in Canada is potency: Bhang bars, for example, come in 100 mg formats in the US, while Canada comes in 10 mg each Pack is limited.
That limit is likely eating up edibles’ market share and leading more experienced consumers to other sources, he said. If that limit were raised, the market for edibles – and brands like Wana and Bhang – would likely become even more successful.
“There is still a group of people who have higher tolerances, whether from prior medicinal use or from heavier cannabis users,” explains Marotta.
“And I think there is a public safety issue here, if we are not allowed to offer a safe legal alternative in terms of potency of in-pack edibles, that category is going to remain undersized and people have to be brought back to the illegal market.”
The Cookies brand comes to Canada
Licensing intellectual property for processed cannabis products is a challenge, but recreating a consistent source of California flower in a Canadian facility is another.
This was exactly what Cookies set out to do with partner Gage Cannabis, with whom they had worked in a number of Michigan pharmacies.
Together with the Canadian breeder Noya Cannabis, the Gage and Cookies team was able to bring the popular Gary Payton and Georgia Pie varieties to the Canadian market.
“If you open a blue bag in Toronto now, you should have the same experience that you would if you did our Haight store in San Francisco.”
Crystal Millican, Vice President of Retail at Cookies, said on a phone call.
But the blue bag is clearly different – gone are the playful illustrations on US bags, which have been replaced by a solid blue color with a capital “C” on top. After all, the name Cookies could be considered appealing to kids – a big no-go in Canadian trademark regulations.
Fortunately, Cookies has the freedom to market and hype their cannabis flowers in the US – founder Berner has 1.8 million followers on Instagram alone – likely helped sell the products out completely within a few days of launch.
This high demand has also influenced the prices for types of cookies. The pre-rolls currently cost just under $ 18 on the Ontario Cannabis Store website.
“The hype behind the brand and evolution behind what has already been established by the cookies community, and the opportunity to bring this to Canada, drove everyone to buy it. Even if their business sells it at higher prices, ”said Cassia Bommarito, Marketing Ops Manager at Gage Canada, on a phone call.
The US brand invasion isn’t over yet
Cookies plan to expand to other provinces, bring in more of their signature strains and even open a flagship store in Toronto in 2022. Gage has extended its license agreement for two years until 2026.
The influx of US brands with Canadian license agreements will continue to hit the market. The recent takeover of Agripharm by TREC, for example, gives them the exclusive rights to other award winners from the USA – Bakked and O.pen.
As for Indiva, they have also launched domestic edible brands like Ottawa-based Slowride Bakery. Her licensing deal with bestseller Wana has three and a half years left, but that could be complicated by Canopy Growth’s recently announced deal with the Colorado company.
The deal allows Canopy to fully acquire Wana, but the deal is contingent on federal cannabis reform in the US – something that is far from certain at this point in time.
“It is not one hundred percent clear how everything will work out,” said Marotta. “But we’re excited about that. We think it is a great testimonial for the brand that Canopy is buying Wana and maybe a testimony to the licensing model too. “
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