5 CPG Focused Cannabis Producers That Are Sure To Capitalize On 4/20

For decades, April 20th has been a holiday for cannabis consumers and demand this year is expected to be high. 

The holiday started in the early 1970s when five friends from a California high school who were collectively called the Waldo’s decided to meet at 4:20 to indulge in their after school special next to a statue of famous chemist, Louis Pasteur. The friends would say “420” to each other at some point during the school day as code to meet for a smoke.

The term really gained traction when one of the friends (Dave Reddix) landed a gig as a roadie for Grateful Dead bassist Phil Lesh. So the story goes that in December of 1990, Deadheads in Oakland handed out flyers inviting people to smoke “420” on April 20th at 4:20pm – one of these fliers happened to land in the hands of Steve Bloom, a High Times reporter, and the holiday was born.

For companies, the holiday represents a great opportunity to generate revenue and acquire new customers. By offering large holiday discounts, cannabis brands can reach consumers that have never previously tried their product and we find this to be significant. 

From North America to Europe, we expect to see more consumers celebrating the holiday. We expect cannabis operators to benefit from how the industry has become more mainstream and forecast higher sales than last year. 

Every year, we receive questions about the companies that are poised to capitalize on the holiday. Today, we want 7 companies that are positioned to benefit from the holiday and believe that our readers should be aware of these opportunities. 

1. HEXO Corporation (HEXO.TO) (HEXO) – the company recently launched a line of cannabis beverages and we expect to see strong consumer demand for the recently expanded product line
2. Canopy Growth Corporation (WEED.TO) (CGC) – with a diversified product portfolio, the company should see strong demand for its cannabis flower and cannabis derivative products 
3. Tilray Inc. (TLRY) – has attractive leverage to the European Union (EU) and we will monitor how the region celebrates the holiday
4. Aphria Inc. (APHA.TO) (APHA) – owns a diverse product portfolio and has a large footprint in the US after the business acquired Sweetwater Brewing Company
5. High Tide (HITI.V) (HITIF) – with more than 80 dispensaries in Canada, the cannabis retailer should benefit from increase traffic (in-person and online)

If you are interested in learning more about the companies that are positioned to capitalize on the 420 holiday, please send an email to support@technical420.com with the subject “420 Companies” to be added to our distribution list.

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Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

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