A major change is coming to Canada and it’s less than a month away. After having legalized adult cannabis consumption on October 17 last year, there was no massive wrath from some deity that turned the world inside out and the country is ready to take the next step forward. This coming October 17, Canada will begin to allow cannabis derivatives, such as edibles and nonalcoholic beverages, and Aurora Cannabis (TSE: ACB) is ready to take the bull by the horns.
Research has already shown that the legal cannabis edibles market will ready $4.1 billion in Canada and the US by 2022 – more than double what it is now. Edibles are expected to dominate the entire cannabis market and Canada alone is expected to see around $1.3 billion in sales. Cannabis-infused beverages will see around $450 million in sales and concentrates, about $100 million.
This is good news for Aurora, which announced this past June that it is ready to get into the edibles market. It has already established facilities to produce high-quality products and is involved in a partnership with PAX Labs to advance its vaping products offerings. It wants to introduce a new line of vaping products and has already created a facility to get the operations going. The 20,000-square-foot Aurora Air manufacturing facility will be at the heart of the company’s edibles products and will also develop, along with the company’s Polaris facility, vaping pens, mints, chocolates and gummies.
Aurora was forced to report a slide in revenue in its most recent quarter, but this is nothing more than a way to energize the company ahead of Canada’s new derivatives laws. Aurora explains, “With the Canadian launch of derivative products in the coming months, we have made the necessary investments to ensure readiness and focus on a variety of value-added products. We are very excited to supply an expanded consumer market with premium cannabis and new product forms.”