The slow takeoff of recreational marijuana sales in Canada was expected to gain momentum in October, when Canada planned to allow producers to add vapes, edibles, beverages, and popular CBD to their sales of the dried flower that became legal last year. But a briefing Friday by the country's health regulator, Health Canada, has confirmed that sales of these second-wave products will not begin until late December.
That means revenues from these so-called Cannabis 2.0 products will not be meaningful until the first quarter of 2020, GMP Securities analyst Rob Fagan said in a late Friday note. In U.S. states that allow your sales, the products are becoming popular as a smokable flower. So Canadian marijuana producers like
"This could potentially have a timing shift impact on our forecasts for Cannabis 2.0 products," said Fagan warned
Read more in our recent story: Marijuana Sales Are Soaring. Marijuana Stocks Are Not
With its 38% -owner
(STZ), Canopy says it's been developing cannabis-spiked drinks that will taste like familiar alcoholic beverages, but be free of alcohol and calories. Now, those products will arrive later than many hoped.
Read our recent interview: Why Aphria is a Better Marijuana Stock Than Cronos, According to an Analyst
Health Canada said its rules for new products will take effect 17 of this year. Producers can then start notifying the agency of the products they would like to sell. But they can not ship products for 60 days after giving notice.
So no vapes or edibles will reach the retailers' shelves until Dec. 17.