It was only six years ago that Canadian conglomerate Canopy Growth Corp. was positioning itself to be among the top – if not the top – player in the North American cannabis market. With a $4 billion investment from Constellation Brands in 2018, the company had ambitions to have its hands in all manner of CPG products, including edibles and beverages, developing innovations like Karma Water’s CBD line and its own sparkling water brand Quatreau. 

Now, the company is, it feels fair to say, facing a crisis. On Friday, Canopy announced its stock price had fallen below $1 per share, risking delisting from Nasdaq if it doesn’t raise the value by January 8. In its Q4 and full year earnings report last month, Canopy issued a going-concern warning after reporting a quarterly loss of CAD$648 million as revenue fell 14%. Over the past year, Canopy cut around 1,200 jobs.

As MarketWatch noted on Friday, the market values for just about all of the largest Canadian cannabis producers have fallen significantly since their peaks, but Canopy has fared the worst, with a market cap of $324 million. 

Remember that back in October Constellation Brands sought to simplify its cannabis strategy by converting its common shares of Canopy into new non-voting exchangeable shares and consolidating its U.S. cannabis assets into a single holding company: Canopy USA. 

• In short, while Constellation still owns 35.7% of the business, it stepped back from the day-to-day and gave up its board voting position. 
• Constellation had previously announced a $1.1 billion writedown earlier in 2022.

This has all been compounded by the SEC investigation into Canopy’s BioSteel sports drink brand over “material misstatements” in its financial reporting, which included overstating 2022 net sales by around $10 million (or 2% of total sales) and by $14 million (4%) for the last nine months of the year. 

• The overstated results led to the exit of “several members” of BioSteel’s leadership team, CEO David Klein said last month.
• In 2021 Goldman Sachs Equity Research analysts remarked that the brand reminded them of “an early stage BodyArmor.” Today, BioSteel has become more of an anchor around Canopy’s neck, with the conglomerate’s adjusted gross margins clocking in at -18% in Q4, after inventory write-offs, versus +11% excluding BioSteel. 
• Klein has reiterated the company’s “great confidence” in the brand itself and, on the upside, BioSteel’s U.S. ACV is up and it has made gains in Canadian gas and convenience stores.

Fresh off of landing a multi-year partnership with the next host of Wheel of Fortune, Ryan Seacrest, Health-Ade has brought on CPG industry veteran Shawn McLaughlin as its new Chief Sales Officer. McLaughlin most recently was SVP of Sales at dairy-free cheese and frozen food company Daiya Foods. Before that, McLaughlin held a number of roles for Baltimore-based, organic salad dressing maker Tessemae’s, as well as Johnson & Johnson.

• McLaughlin comes aboard as Health-Ade works to mainstream its booch. The brand recently debuted four flavors in aluminum cans: Pink Lady Apple, Ginger Lemon, Passion Fruit-Tangerine and Pomegranate.
• The brand also announced a partnership with its home market Major League Baseball franchise the Los Angeles Dodgers to offer the cans at the team’s stadium.
• It seems McLaughlin will have a lot of momentum to work with seeing as the company reported it has outpaced the kombucha category’s growth by 22x in the last year. 
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• In the 52-weeks ending April 23, Circana reported Health-Ade’s refrigerated kombucha retail sales up 8% to $106.2 million, compared to just 0.7% category growth.

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Doctor D’s line of sparkling probiotic beverages is sporting a modern new look following a recent brand refresh. 

• Available in Concord Grape, Crisp Apple, Tart Cherry, Ginger Brew, Pineapple and Tangerine flavors in 12 oz. cans, the Colorado-based brand said in a press release the updated packaging “represents [the brand’s] commitment to quality, authenticity and adaptation.” 
• Additionally, Doctor D’s is slated to roll out two new flavors, Classic Cola and Root Beer, exclusively at Publix beginning in late July through September. 
• The good doctor himself, founder and CEO Stuart Dimson, told us last year that the brand had finally begun experiencing a growth spurt in retail after nearly a decade in business. Circana showed sales up 61.7% in the 52-weeks ending April 23.
• The brand first moved from glass bottles to cans in 2020. This new look provides a cleaner and clearer label, putting more emphasis on visualizing the flavors.

From the people who brought you SailAway Coffee comes Beachball, a new line of premium organic cold brew teas, available in 12 oz. slim cans. With three flavors including White Peach, Grapefruit Basil Mint and Strawberry Hibiscus, does the choice to forgo a third white tea option in favor of Hibiscus fit with the brand’s lineup?

Read the full review on BevNET.

More pickle news!? In an April Fools’ prank-turned-reality, Spritz Society has teamed up with Claussen Pickles to create what it touts as the world’s first pickle-flavored sparkling wine cocktail. The New York-based sparkling canned cocktail brand jokingly teased a pickle flavor on April 1 last year, but was inspired to make the beverage a reality following positive consumer reaction and demand. 

• Each 8.4 oz. can of Spritz Society Pickle by Claussen (6% ABV) is made with white wine and contains 120 calories. The drink is now available for purchase exclusively online for $50 for two 4-packs. 
• This marks Claussen Pickles’ first foray into the beverage space and, in a press release, brand manager Lizzy Goodman said, “[We] think everyone will be pleasantly surprised by the unique, refreshing taste of a pickle-flavored sparkling wine cocktail.” 
• Spritz Society and Claussen aren’t the only brands capitalizing on what appears to be a pickle craze. Last month, Grillo’s teamed up with Two Robbers to release Grillo’s Pickles Hard Seltzer. The limited-edition RTD beverage features 20 gallons (yes, you read that right) of Grillo’s original dill pickle brine per batch.

Top Chef star Tom Colicchio joins us to discuss Colicchio Kitchen, his premium brand of sauces and condiments for home chefs. Colicchio spoke about his involvement in the brand and his role in the development of its products, his perspective on adding an ethnic-themed line, how he defines “good food” and why he’s less intimidating than you might think.

Listen to the episode here.