Canadian marijuana producer Canopy Growth has acquired Ace Valley cannabis in an effort to grow brand loyalty with its customers.
The company announced on Thursday that it has acquired Toronto company Ace Valley, who makes vapes, gummies and pre-rolls. Financial terms of the deal were not disclosed.
Canopy Growth Chief Product Offer Rade Kovacevic, said the company was keen on the deal because its stores were among the first to stock Ace Valley, which revealed the strength of the brand.
“We saw them build a really strong consumer following and brand affinity, which is a particularly difficult thing to do in the Canadian cannabis landscape,” said Kovacevic.
According to the Chief Product Officer, Ace Valley expanded rapidly in Ontario and placed high on top pre-roll, edible and vape lists.
“For us, it made a lot of sense to take this strong collaborative relationship we had and bring them under the canopy.”
With the purchase of Ace Valley, Canopy is adding another name to its roster of brands which already includes Deep Space, Quatreau and Doja, and partnerships with Martha Stewart and actor Seth Rogen’s Houseplant.
“At the end of the day, that grassroots brand authenticity connects best with customers,” Kovacevic said of Ace Valley having a wide following with younger adults.
Asked whether Canopy will soon sign more deals, Kovacevic said “our general view of the market is that we are always looking at what works well and what we do in house and out of house.”
“We always look at great brands.”
Ace Valley founders Mike Wagman and Jesse Dallal will be “friends that collaborate with us,” Kovacevic said. They will not however join Canopy’s team.
“Canopy is committed to the enduring integrity of Ace Valley and we look forward to seeing it grow into the future.”