Pot for Pets? Canopy Growth Is on the Bleeding-Edge of Marijuana Stocks

Marijuana stocks have been all the rage as legalization for medical and personal use has expanded. Leading the way is superstar Canopy Growth (NYSE:CGC). CGC has been riding high as it continues to see rising sales and has racked up some major deals with blue-chip companies such as Constellation Brands (NYSE:STZ).

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There’s a reason why Canopy could be one of the marijuana stocks first real winners on the race to profitability. Part of the reason is that Canopy is forward thinking.

Just as it made some of the first moves into cannabis-infused drinks and other products with its STZ partnership, it’s doing so with its latest deals. That will have it front and center in the animal and pet health marketplace. Don’t laugh. Petcare is a booming and thriving business. Fertile ground for marijuana stocks to profit.

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And now, Canopy Growth has the chance to be the leading cannabis stock in the sector.

A Big Market for the Marijuana Stocks

It’s no secret that Americans love their pets. A 2012 Harris Interactive survey found that 9 out 10 respondents viewed their companion pets as a member of the family. The survey also found that these respondents were willing to do whatever is necessary to ensure the health of their pet. And in that love and willingness, many Americans tend to spend almost nearly as much money on them as we do our own children.

The American Pet Product Association data shows that annual expenditures by consumers for their pets have grown in each of the last 18 years. This includes during the Great Recession. Last year alone, Americans spent a whopping $72.56 billion on their pets. This includes $18.3 billion on veterinary care and $15.5 billion on supplies and over-the-counter medicines. This year, the APPA estimates that number will surge to more than $75 billion. The truth is, American’s are very willing to spend on their fur babies.

What does this have to do with marijuana stocks?

While cats and dogs are very different than people, they do benefit from some of the same treatments for ailments. A lot of feline and canine drugs have been derived from their human counterparts. For example, our vet prescribes half a Benadryl tablet for our dog when his spring allergies start.

With that, it stands to reason that dogs and cats may benefit from similar positive health-effects from cannabinoid and hemp-based CBD products. Already, several studies are underway with the both Colorado State University and the University of Pennsylvania School of Veterinary Medicine looking into CBD treatments for pets with osteoarthritis/joint pain and epilepsy. Meanwhile, just as there is a big and growing market for human supplements using CBD, there’s massive potential for pet products as well.

For the various marijuana stocks, this is a huge untapped market that they certainly can compete in, now that the Farm Bill has passed and hemp-based CBD is legal in many items. For Canopy Growth, the potential seems very big considering its recent moves.

Canopy Growth Could Be the Leading Marijuana Stock for Pets

CGC is poised to win in the booming pet care market thanks to another smart partnership. Around the end of March, Canopy cut a deal with Sequential Brands Group. The deal with Sequential puts CGC right into the thick of the pet care market as the collaboration focuses on the pair developing new hemp-derived cannabidiol (CBD) products for animals. The deal was sort of swept under the rug as other marijuana stock news was breaking around that time. But in the deal, was a huge coup for Canopy. And that was Martha Stewart.

Yes, that Martha Stewart.

The homemaker and entertaining queen provides plenty of brand cache for Canopy as she will become a strategic advisor on the firm’s pet and hemp-product lines. Stewart has long been a pet advocative and her chow chows have become stars in their own right. With her on board, sales for whatever CGC develops could quickly find a foothold and command some high market share in the CBD pet product sector.