By Emily Ledger
Canopy Growth Corporation has acquired British beauty brand ‘This Works’ for a purchase price of £43 million. The deal will see the development of CBD-infused beauty products, including skincare and sleep products.
Canopy Growth Corporation
The Canopy Growth Corporation is an international cannabis, hemp and cannabis device company founded in Canada. The company has operations in over a dozen countries across five continents. The new deal is expected to allow both companies to expand their operations further.
The company sells both medicinal and recreational cannabis products, which have been endorsed by a number of influential celebrities including Martha Stewart and Snoop Dogg.
Canopy Growth was founded six years ago and has built up an impressive stock market value of $16bn.
This is largely thanks to the deregulation and legalisation of Cannabis products in the North American market. The relaxation has led to an explosion of the Cannabis industry in these countries.
Bruce Linton, Chairman and Co-Chief Executive of Canopy Growth, said that their new CBD products had the potential to “disrupt the cosmetic and sleep solution industries”.
Furthermore, the deal will also expand Canopy’s presence in the UK. The company already has a UK joint venture, Spectrum Biomedical, focused on producing medicinal cannabis products for patients in the UK.
This Works is a London-based company, founded by former Vogue journalist Kathy Phillips. The company successfully built up a large following on social media, challenging more well-established players in the market.
Chief Executive of This Works, Dr Anna Persaud, will remain in charge after the takeover and will oversee the launch of the CBD-infused products. The ingredient does not induce a high but is widely thought to have potential therapeutic benefits.
This Works stress that they have no plans to change the quality or ingredients of existing products. The CBD ingredient will only be contained in newly developed products.
Persaud expressed her enthusiasm for the new products to be launched:
“As a leading wellness brand and a pioneer in sleep beauty products, we are passionate about the opportunity CBD offers beauty consumers.
“Canopy Growth will provide the expertise, research, scientific rigour and quality assurance that will allow This Works to drive the agenda in wellness beauty’s ever-evolving market.”
It is estimated that the European cannabis market will be worth €123bn (£106bn) by 2028, according to the London-based firm, Prohibition Partners.