Canopy Growth to exit retail cannabis biz in Canada

The cannabis company is recalibrating its operations and looking for new options

Canopy Growth has made the decision to part ways with the cannabis retail industry in Canada. Although it is its home country, the decision appears to have been deliberate among the stakeholders, and the conclusion was reached to break the relationship.

OEG Retail Cannabis is the current licensee partner of Canopy Growth, which currently owns and operates the Tokyo Smoke stores in Ontario. This firm has now made the decision to acquire the 23 Canopy Tokyo Smoke and Tweed locations.

These stores are located in Labrador, Manitoba, Saskatchewan, and Newfoundland. Recent reports also indicated that Canopy has entered into an agreement with 420 Investments Ltd., under which FOUR20 agreed to acquire ownership of five retail stores in Alberta.

The long-established cannabis leader also reportedly terminated a licensing agreement in Ontario for Alimentation Couche-Tard Inc. to operate Tweed-branded dispensaries. The recent decisions made by the company are part of Canopy’s focus on continuing to move toward profitability, wanting to become a company focused on premium brands.

“We are taking the next critical step in advancing Canopy as a leading premium brand-focused CPG cannabis company while furthering the Company’s strategy of investing in product innovation and distribution to drive revenue growth in the Canadian recreational market,” David Klein, the company’s CEO, commented. “By realizing these agreements with organizations that possess proven cannabis retail expertise, we are providing continuity for consumers and team members.”

The green light from various regulatory conditions and other customary closing terms is still required for the closing of both deals to be completed. If approval is achieved, the Tokyo Smoke brand will be transferred to OEGRC, and all stores acquired under the Tweed brand will be rebranded. Canopy Growth will continue to own and operate the Tweed brand.