Is Canopy Growth Focusing Too Much on Beverages?

Canopy Growth (NYSE: CGC) has a problem. The company isn't growing fast enough, and it hasn't been profitable enough to justify its place atop the cannabis industry. Investors have grown frustrated with Canopy Growth missing sales targets and continuing to suffer significant losses. The "cannabis 2.0" market that is about to launch in Canada, giving consumers access to new marijuana products, could help Canopy Growth deliver much stronger results. The danger, however, is that the company could be too focused on a segment of the market that might not be all that lucrative: beverages.

Last month, Canopy Growth received secure storage and operating licenses for its beverage facility at its headquarters in Smith Falls, Ontario. The company calls it a "state-of-the-art" location where it will produce 11 cannabis-infused beverages. In total, Canopy Growth now has 10.5 million square feet of licensed production capacity in Canada that will help it meet the demand for new and existing cannabis products.

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Source Fool.com