CGC stock has had a rough year, there's no doubting that. Having ousted former CEO and industry pioneer Bruce Linton in July after majority shareholder Constellation Brands (NYSE:STZ) grew unhappy with widening losses, Canopy Growth (TSX:WEED) (NYSE:CGC) reported a massive $1.28 billion CAD quarterly loss in August. With scandal, supply issues, and slumping demand rattling the infant cannabis industry, the company now looks towards the market's sophomore year for a fresh start with the launch of 30 next-generation cannabis products.
CGC Stock: A Big Gainer in the 2.0 Market?
After cannabis 2.0 came into effect earlier this month, opening the market for the sale of a wide range of cannabis derivative products before the end of the year, many cannabis companies have been unveiling their new portfolios for the 2.o market. Very few are as impressive or expansive as Canopy Growth's, which will start by releasing infused beverages, edibles, and vapes and plans to roll out 32 specific items by the end of December and add 20 more over the following 12 months. CGC stock has gained 3% since the new regulations came into effect on October 17.
"We've been working on this for years at this point. And so shelf stability was one of the early pieces that was very important for us," Canopy President Rade Kovacevic said in an interview. Pot stocks have tanked across the board in the first year of legalization, and CGC stock has been one of the worst affected, having dropped over 60% from a January peak of $67.22. However, the industry has been pinning its hopes on the 2.0 market to stimulate consumer demand.
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Infused Beverages the Key to New Consumers
Potential revenues from the new cannabis products and bringing in new consumers who previously would not have been interested in cannabis products are two key factors in transforming the fortunes of the market. Canopy Growth's market research shows that 80% of non-cannabis users would be interested in trying a pot-based drink, one of the most eagerly anticipated products in 2020.
CGC stock is currently trading at $26.81, following the announcement of the new product ranges.
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