Cannabis 2.0: surveying the industry’s next wave
CannTrust looks to be key player in evolving product market
CannTrust figures to be a key player in ‘Cannabis 2.0,’ the massive proliferation of edible products from THCinfused water and coffee to chew toys for rover.”
As many casual observers focus on the short-term impact of recreational marijuana legalization in Canada next month, an elite cannabis producer from Vaughan, Ont., is already preparing for the much larger wave that could follow.
While only the dried flower, oils and capsules are legal on October 17, CannTrust, a licensed, federally-regulated producer is gearing up for what it calls Cannabis 2.0 — the massive proliferation of new categories and products that will become available over the next few years.
CannTrust figures to be a major player in Cannabis 2.0, as consumers begin to experiment with smoking and vaping alternatives. The company is developing products as varied as cannabis-infused beverages that compete with alcohol at the local pub, THC-infused water and coffee, pet food and chew toys for the family dog.
“This is a sophisticated experience that has the potential to create products that span the medical, recreational, beauty, wellness and pet [markets],” said Rogers, president of CannTrust.
Rogers predicts rampant curiosity and astronomical sales of recreational marijuana in the weeks after legalization, but that’s just a hint of what could follow. It’s expected legal recreational cannabis alone will surpass hard liquor sales in Canada by the year 2020.
With so much opportunity on the horizon, Rogers says CannTrust is closely eyeing a number of popular convenience products, including the single-serve beverage market, with cannabis-infused pods—like the ones used in Keurig and Tassimo machines. CannTrust holds the patent for BrewBudz, a cannabis-infused single-serve brewing product. BrewBudz will be tailored to each market with reliable, standardized doses for medical use as well as recreational.
While edibles and other cannabis products can’t yet be legally sold in Canada, Rogers noted they’re also under development at CannTrust, which has a 60,000-square-foot, stateof-the-art manufacturing centre of excellence in Vaughan. The Vaughan facility processes cannabis extracts and serves as a distribution centre, and Rogers revealed the company is currently adding another 600,000 square-feet to its existing 450,000-squarefoot cannabis greenhouse in the Niagara Region, creating one of the largest greenhouses in North America.
The fragmented regulatory environment in the United States may have hindered the growth of national brands, but Rogers noted Canada’s industry will be federally regulated and legal. He sees Canada as an ideal test market for both start-ups and established players.
“I think you’re going to see Big Alcohol come into the market to compete and maybe even Big Tobacco,” he said. This surge of players will lead to exciting and experimental product developments in quick succession, Rogers theorized. The key advantage will come to those with the foresight to have readied their production and development facilities to meet this demand.
Along with beverages, CannTrust is creating products for pets. The annual market for companion pet products could number in the billions, with edibles in development to treat pain, anxiety and depression. As with products for humans, pet products can be either psychoactive or non-psychoactive, depending on the consumer’s preference.
While a great deal of attention will be focused on smoking and vaping in the days after legalization, the next wave of legal cannabis is predicted to be much larger. CannTrust has positioned itself to be at the helm, leading the way into uncharted territory as more and more product and consumption options arise.
“It’s just exploding,” said Rogers, referring to the cannabis market in general. “It’s a pleasure to be in.
“This is unlike any other industry in the world right now, and Canada is at the forefront of it.”