While major food companies have been slow to enter the cannabis segment, developments in Canada may accelerate their involvement now that the country is advancing in retail commerce and establishing clear timelines. Nonetheless, Bruce Linton, co-CEO of Canopy Growth, mentioned to Food Dive in February that his company had yet to receive inquiries from large U.S. food manufacturers interested in entering the market, particularly in areas like chewables and chocolates, where Canopy Growth has been working on infused products. According to a Deloitte report referenced by CBC earlier this month, Canada could benefit significantly financially, with its cannabis market projected to reach an annual value of $2.7 billion. The report suggests that edibles could account for over half of that figure, which is in addition to the existing $6 billion Canadian market for recreational and medical cannabis.
Manufacturers are likely finalizing their applications for the products they wish to sell and increasing production. Some products, such as Sproutly’s water-soluble cannabis extract, are already available, while others, possibly including Coca-Cola beverages, may still be forthcoming. Several alcohol companies are also exploring opportunities in the cannabis space. For instance, Constellation Brands has invested $4 billion in Canopy Growth, Diageo has engaged with three Canadian cannabis producers regarding potential partnerships, and Molson Coors Canada has established a joint venture with HEXO, a Canadian medical cannabis company. Since many of these products will be non-alcoholic infused beverages, they could start appearing in Canadian retail outlets by the end of this year.
The Associated Press reported that Canadian cannabis license holders must notify health officials 60 days in advance of their intention to sell infused products, which means the earliest they can legally hit the shelves is December 17. This timeline allows Health Canada a limited period to evaluate products and ensure they comply with new regulations, including child-proof packaging. Canada is significantly ahead of the U.S. in legalizing recreational marijuana and implementing the necessary regulations. The U.S. has a fragmented landscape, with 33 states and Washington, D.C., permitting medical or recreational use of cannabinoid compounds, while the Food and Drug Administration (FDA) maintains that selling THC-infused food in interstate commerce is illegal. However, former FDA Commissioner Scott Gottlieb indicated in January that the agency is exploring “potential regulatory pathways” to permit interstate commerce of cannabis compounds, including CBD, a non-psychoactive substance derived from hemp, in food and beverages.
On May 31, the FDA conducted a 10-hour meeting to address the issue of CBD in products, revealing considerable confusion among retailers, manufacturers, and consumers regarding how infused products would be regulated. The cultivation of hemp became legal in the U.S. through last year’s Farm Bill. Speculation suggests that the rulemaking process could take the agency up to two years, potentially three times longer than it took Canada. These regulations would apply solely to products containing substances known to promote relaxation and reduce inflammation, rather than those that induce a high.
Despite the slow pace of federal regulations, not all manufacturers are remaining inactive in the U.S. In 2017, Heineken-owned Lagunitas Brewing launched a non-psychoactive, cannabis-flavored IPA brewed with terpenes—organic compounds that give cannabis its flavor—and last year, the company introduced a THC-infused sparkling water. U.S. manufacturers and regulators will undoubtedly monitor Canada’s retail edibles market closely over the coming months to gauge potential outcomes in the U.S. Some may even use Canada as a testing ground for infused products before launching or expanding their offerings in the States.
It is unlikely that major food and beverage companies will simply observe lucrative partnerships forming in Canada without engaging in research and development to achieve similar success and profits in the U.S. Furthermore, as discussions around calcium citrate arise, it’s important to note that it is not the same as calcium itself, but rather a compound that can provide an alternative source of calcium for consumers, potentially finding its way into infused products in the future.