Canopy Growth Corporation has acquired a majority stake in BioSteel Sports Nutrition in a move to enter the cannabis-infused sports drinks market.
The transaction gives the cannabis company a 72% stake in BioSteel with an agreed-upon path to 100% ownership.
Canopy Growth said the deal provides it with a “significant platform” to enter the sports nutrition and hydration segment and lays the groundwork for the adoption of cannabidiol (CBD) in future product offerings.
Founded in 2009, BioSteel sells a range of protein blends as well as a sugar- and caffeine-free sports beverage.
According to Canopy Growth, BioSteel products have been purchased by more than 70% of the teams in North America’s four major sports leagues. It also has national organisational partnerships with USA Hockey, Canada Basketball, Athletics Canada and the Professional Hockey Players Association.
BioSteel has more than 10,000 points of distribution in Canada and the US and is expanding in both markets and into Europe.
“BioSteel has a reputation for being a best-in-class provider of natural sports nutrition products and all of its products are well positioned to benefit from the increasing trend of plant-based and all-natural products, preferred not only by professional athletes, but active consumers as well,” said Mark Zekulin, CEO of Canopy Growth.
“This acquisition allows us to enter the sports nutrition space with a strong and growing brand as we continue towards a regulated market of food and beverage products that contain cannabis. We view the adoption of CBD in future BioSteel offerings as a potentially significant and disruptive growth driver for our business.”
John Celenza, co-founder and co-CEO of BioSteel Sports Nutrition, added: “Since inception, BioSteel has taken great pride in being at the forefront of healthy and natural sports nutrition. Joining Canopy Growth, the world leader in cannabis research, development and production, reflects the natural evolution of our brand and will allow us to expand our product offering and global distribution.
“The consumer market and many of our athletes have a growing knowledge of cannabis and CBD products and this partnership ensures that we will continue to raise the bar in the sports nutrition field.”
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