Last year, Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) reported a major development and acquired a majority ownership stake in BioSteel Sports Nutrition, a leading producer of sports nutrition products. Since then, the beverage brand has been forming agreements with high-profile professional basketball teams and star athletes.
During the last month, Canopy Growth has reported that BioSteel would become the official drink of the Philadelphia 76ers and the Toronto Raptors. The beverage is also the official drink of the Brooklyn Nets and we are favorable on the amount of visibility that is provided through these agreements.
Through the acquisition of BioSteel, Canopy Growth has entered into strategic distribution agreements with leading beverage distribution companies. These agreements will bring BioSteel’s ready-to-drink, electrolyte-packed sports hydration beverages to consumers through a direct-store-delivery (DSD) network by early 2021.
In early August, BioSteel announced a momentous partnership with Patrick Mahomes who is considered to be the new face of the NFL. The deal is the first of its kind for Mahomes since winning the Super Bowl earlier this year and we are favorable on the amount of value that can be generated through the relationship.
In partnering with Mahomes, BioSteel continues to lead the wave of health sports nutrition. The partnership with the star quarterback is expected to help reaffirm the brand’s position as one that redefines healthy sports nutrition. As a member of BioSteel, Mahomes will help increase awareness for the BioSteel brand as it continues to rise within its category and take on the industry’s giants.
BioSteel has been executing on a strategy that is focused on capturing market share in the US by forming relationships with the country’s top grocery store, gas stations, and convenience retailers. Through its partnership with NBA teams and star athletes like Mahomes, the brand expects to expand its US footprint and reach new health-minded consumers, athletes, and sports fans.
The NBA To Stop Testing For Cannabis
Hours after Canopy Growth Corporation (WEED.TO) (CGC) announced that BioSteel would become the official drink of the Philadelphia 76ers, the National Basketball Association (NBA) announced that it would stop testing players for cannabis for the 2020-21 season.
Prior to the NBA restarting in Orlando, the NBA announced important revisions to the league’s policy on cannabis and reported that it would not be testing for recreational drugs. The development puts an exclamation point on the change in stigma on cannabis by one of the world’s largest professional sports leagues.
Many people believe that the policy change was prompted by the COVID pandemic as the NBA wanted to limit the amount of unnecessary contact with players. Going forward, the NBA plans to limit the amount of drug tests to players who have previously violated the policy and we are favorable on the trend that we are seeing with cannabis.
The cannabis legalization trend has put professional sports leagues in a tricky position. Currently, cannabis is illegal in only 6 states that have one of the four major (basketball, football, baseball, and hockey) professional teams. These states are Indiana, Georgia, North Carolina, Tennessee, Texas and Wisconsin.
Many athletes want to avoid taking opiates and find new ways to treat pain. Cannabis has proven to be the answer for many athletes and professional sports organizations are started to recognize this.
We believe the cannabis legalization train has left the station and this is a trend that we expect to become more significant in 2021. If you are interested in learning more about the trend we are seeing in professional leagues, please send an email to email@example.com to be added to our distribution list.
Published at Mon, 14 Dec 2020 17:16:57 +0000