Canadian pot producer Tilray (TLRY) will supply CBD ingredients to be used in wellness products backed by golfing legend Greg Norman, under a deal announced Thursday with Ohio-based cannabis company Green Growth Brands. Marijuana stocks were mixed.
The announcement marks the latest CBD-focused retail advance for Tilray, Authentic and Green Growth Brands following the signing of the 2018 farm bill, which legalized hemp, a source of CBD. It also comes a day after Green Growth escalated the drama elsewhere in the cannabis industry, saying it stood by an offer to take over Aphria (APHA) after Aphria rejected it.
For Active Adults
With the deal announced Thursday, the companies will develop a line of CBD-infused personal care products “designed for active adult men and women.” Tilray will be the supplier. The products are expected to become available later this year, Green Growth Brands said in a release.
CBD, or cannabidiol, is found in marijuana and hemp plants and doesn’t get users high the way THC does. The nonpsychoactive compound has become the latest ingredient to be absorbed into the nation’s massive self-care industry. Many users claim CBD can help ease joint pain, reduce anxiety and facilitate sleep.
More professional athletes in recent years have come forward to talk about how cannabis has benefited them, after getting banged up on the field or on the court. In a statement on Thursday, Norman noted the stress that golf put on his body.
“I played professional golf for 40 years, hitting more than 5 million golf balls that have caused significant wear and tear on my body,” he said. He added that products branded with his name would be distributed “throughout the country.”
Wynn Theriault, who handles media relations for Green Growth Brands, said in an email the products would be sold in the U.S. for now and would be hemp-derived and farm-bill compliant.
The plan, for now, is to offer products like muscle balm, lotion and sunscreen, she said. It was not yet clear where the products would be sold in the U.S. specifically.
Tilray Stock Falls, Marijuana Stocks Mixed
Tilray stock reversed higher to close up 2.35% at 79.99 in the stock market today. After surging to 300 in September, Tilray stock has fallen. Tilray stock was below its 50-day line.
Among other Canadian-based, U.S.-listed marijuana stocks, Cronos Group (CRON) jumped 9%, after sliding the past two days. Aurora Cannabis (ACB) added 2.6%. Aurora Cannabis stock has a strong 96 Composite Rating. The stock is also holding above its 200-day line.
Canopy Growth (CGC), which reports fiscal third-quarter earnings after the market close on Feb. 14, edged up 0.9%.
Aphria (APHA) lost 1.3% on Thursday. The slide continues a downtrend for the stock, which fell after Aphria rejected Green Growth’s takeover bid.
Those marijuana stocks tumbled from highs reached before recreational legalization in Canada began in October. They rebounded last month.
Canada’s recreational weed market has been hurt by shortages. New figures from Statistics Canada out Thursday could add to concerns about demand.
The agency said that around 15% of Canadians over the age of 15 said they used cannabis in the past three months. But the agency said that was “a similar percentage to what was reported before legalization.”
Nearly one in five Canadians believed they would use cannabis over the next three months, the agency said.
Other Retail Partnerships
Green Growth last month said it had partnered with shoe-store chain DSW (DSW) to sell hemp-derived CBD personal care products in 96 DSW stores in the U.S. Also last month, Tilray announced a revenue-sharing deal with Authentic Brands that would put Tilray-made CBD products into stores under Authentic Brands’ umbrella.
Curaleaf, a cannabis producer in a variety of U.S. states, also said it plans to bring its CBD hemp line into “mainstream retailers” this year.
During a conference last month, Tilray CEO Brendan Kennedy offered some examples of how the deal might play out. He said Tilray’s CBD might go into foot balms in stores like shoe-store chain Nine West or beauty products sold by apparel maker Juicy Couture.
Presentation materials from Tilray show other potential products that could come from the deal. They include topicals from Spyder with Tilray’s CBD. They also include CBD-infused armbands for tennis elbow.
Professional Athletes Show More Interest
Authentic Brands owns those companies and dozens of others. Its retail network includes thousands of stores. It has also done branding work related to celebrity icons like Marilyn Monroe, Elvis Presley, Muhammad Ali and Shaquille O’Neal.
Norman, who has won dozens of international golf tournaments, would be the latest athlete to enter the cannabis business. Former NBA player John Salley and his daughter co-founded a cannabis company, Deuces22. Ricky Williams, a former NFL player, also launched his own cannabis brand.
During a recent fireside chat with marijuana delivery service Eaze, Salley talked about his experiences with cannabis.
“And there’s guys on the team that you know smoke weed,” he said. “And they hung together. As I got older, I realized those were always the better players on the team.”
