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May 24, 2018

Southern Glazer Agrees to Distribute Aphria In Canada

MJ Biz Daily reports that the Canadian subsidiary (Great North Distributors) of US-based company, Southern Glazer, has agreed to an exclusive distribution deal with the Canadian cannabis firm Aphria. The move reinforces the efforts of large spirits holdings companies to evolve with legalized cannabis rather than have an antagonistic relationship with the burgeoning market. Additionally, the move presents more evidence that American companies and investors, similar to Cronos being placed on the NASDAQ, are prepping for investment opportunities on US soil by, in a sense, testing out the Canadian markets and seeing what sticks.

Glazer’s move into the Canadian scene mirrors Rochester, NY-based Constellation Brands’ acquisition stake last fall into Canopy Growth. While these are major moves, many industry experts on both sides of the border suspect that these may be the tip of the cannabis-investment iceberg. As MJ Biz Daily astutely observes, with consumers more and more readily embracing the “high” provided by cannabis, experts in cannabis who can replicate that in different foods and beverages will be at a demand. Particularly if and when the US market is legalized on a federal level.

Of course, these moves are symbiotic to an extent. While Aphria or Cronos or NextLeaf Solutions all have an expertise in cannabis extraction and rendering, Southern Glazer, Constellation, et al bring a scalability and expertise in distribution and marketing that many plant-touching companies lack. In what is an ever growing and increasingly competitive market, smaller companies may well reap benefits from partnering with large companies that have pre-existing distribution relationships and sales channels.