Article by Baystreet Staff
Marijuana edibles were expected to be legalized in Canada within a year of recreational cannabis’ October 2018 kickoff. However, actual sales of edibles are now expected to be delayed in Canada, giving way for California’s surging edibles market to widen the state’s advantage over the country to the north. Despite Canada’s delays, several companies are moving forward with new edible products including Plus Products Inc. (OTC:PLPRF) (CSE: PLUS), Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), MariMed Inc. (OTC: MRMD), The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTC: TGODF), and Tilray, Inc. (NASDAQ: TLRY).
Leading the way in California’s blossoming cannabis market, is Plus Products Inc. (OTC:PLPRF) (CSE: PLUS), which is now dominating with 3 of the Top 5 cannabis products in Q4—and 4 of the top 10. According to BDS Analytics, during Q4, PLUS also had 3 of the best-selling branded products in all product categories including flower, vaporizers, edibles and topicals. PLUS “Uplift” and PLUS “Restore” remained the #1 and #2 best-selling SKUs. PLUS “CBD Relief” was the #5 best-selling SKU, and the top CBD-only SKU according to BDS analytics.
All three of these products are “gummies”, which at 30% is the largest edible segment by market share. However, the second largest edibles segment is baked goods. In December, Plus Products Inc. (OTC:PLPRF) (CSE: PLUS) acquired California-based cannabis-infused baked goods brand GOOD CO-OP, INC., whose first product, the GOOD brownie, is a modern twist on the classic pot brownie made with high-quality ingredients and uniform product consistency.
BDS Analytics holds the potential for cannabis-infused edible products in very high regard. In a recent report, the research firm projected sales in the edibles market to surpass $4.1 billion by 2022. Cowen Research asserts that the US cannabis market as a whole is expected to be $75 billion by 2030.
“Our objective at PLUS is to build the world’s strongest cannabis brand. When we became the top edibles brand in the largest cannabis market (California) in the third quarter of 2018, our team felt that it was only one more step in a much larger journey,” said Jake Heimark, CEO of Plus Products Inc. “We are proud that we have not only maintained, but continued to grow our position as the market leader in Q4. We hope to continue this momentum into 2019 not only in California, but in other jurisdictions as well.”
Unfortunately for Canadians, they may have to wait longer for entries such as Plus Products Inc. (OTC:PLSPF) (CSE: PLUS) to hit their shelves. While edibles in Canada don’t require a new law to be passed, the government needs to publish final regulations. Prime Minister Justin Trudeau’s pot czar Bill Blair is hoping to complete that by the Oct. 17th target, however there could be a delay of weeks, even months—giving California a longer sales advantage in comparison.