Top Edibles Companies Show Huge Potential in U.S. Market

best edibles companies
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Best Edibles Companies in the U.S.

With so much excitement and buzz surrounding the potential of the marijuana market in the U.S., specific subsectors of cannabis are starting to get more attention.

One such subsector is the edibles market. The best edibles companies in the U.S. are going to benefit from the marijuana rush while also avoiding a lot of the stigma that smoking carries with it, putting them in a sweet spot to take advantage of the budding cannabis market.

But here’s the thing about the best edibles companies in the U.S.: they’re not public companies.

As with the vast majority of marijuana companies in the U.S., they are not listed on any exchanges, primarily due to cannabis still being classified as a Schedule I drug in the U.S. While marijuana-legalized states sell edibles, investing in the companies is a good bit trickier.

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But just because the best marijuana companies on the market aren’t ready right this moment for investment doesn’t mean it’s not worth keeping an eye on them.

For instance, Acreage Holdings is an American marijuana company looking to have an initial public offering (IPO) on the Canadian Securities Exchange (CSE) in an effort to skirt the harsher laws in the U.S.

It’s not impossible that the best edibles companies in the U.S. can use that same circuitous route to become listed and therefore open themselves up to investment.

Another opportunity to invest in these companies is through several companies listed on OTC markets—something I’m often wary of as these stocks tend to carry a higher degree of volatility.

In fact, many of the top edibles producers in the U.S. that are listed on stock exchanges have fared quite poorly in 2018, like Golden Leaf Holdings Ltd (OTCMKTS:GLDFF, CNSX:GLH) and Nutritional High International Inc (OTCMKTS:SPLIF, CNSX:EAT).

If you can stomach that volatility, combined with the uncertain future that lies ahead for these smaller companies, then there is some opportunity to get into the edible market that way.

Brighter prospects lie within companies like Organa Brands, which operates in 10 states and has over 1,200 dispensaries. While it has yet to go public,  stronger companies like these hitting a non-OTC market will be a great way to get in on the best edibles companies in the U.S.

When it comes to cannabidiol (CBD) and other cannabis extracts, the numbers certainly back up the claim that there is big money to be made.

In California, last year alone, edibles accounted for about $180.0 million worth of marijuana-infused food and drinks, or 10% of the state’s cannabis sales. (Source: “Edibles Are The Next Big Thing For Pot Entrepreneurs,” Forbes, July 19, 2017.)

CBD- and THC-infused products are only growing in number as well, as alcohol companies are now partnering with marijuana producers to create weed-infused beverages.

The U.S. marijuana market and edibles share in that market are likely to grow in tandem, presenting a very appetizing prospect for would-be investors.

How to Invest in Edibles Companies

While the best edibles companies in the U.S. still remain private, that doesn’t mean there’s no way into the lucrative edibles market.

One such play would be to get in on CannaRoyalty Corp. (OTCMKTS:CNNRF, CNSX:CRZ).

A marijuana investment company based out of Ottawa, CannaRoyalty stock has ties to a number of edibles producers in the U.S.

CannaRoyalty is positioned differently in that it is primarily an investment company, making it one of the stronger picks on the marijuana market for those looking to diversify their portfolios.

Chart courtesy of StockCharts.com

Another benefit of CannaRoyalty stock is that the company is heavily invested in both the U.S. and Canada, allowing investors to gain exposure to the U.S. marijuana movement.

With no pure-play U.S. marijuana stock available yet on the market for investors, CannaRoyalty provides investors one of the few avenues to profit from the pot market in America, especially the edibles market.

The company has made a number of strong moves that help solidify its position as one of the best marijuana stocks in 2018.

In late March, CannaRoyalty closed its acquisition of Alta Supply Inc. and also signed a binding term sheet to acquire River Distribution.

Both moves helped make CannaRoyalty one of the leading distributors of marijuana in California, a market far larger than Canada.

CannaRoyalty followed those acquisitions up with an acquisition of Kaya Management Inc., giving the company exposure to vaporizer sales across California as well as distribution rights to edibles and concentrates in the state.

While not a direct investment in the edibles market, CannaRoyalty stock allows investors to gain exposure to the U.S. edibles market in a way that is safer and more reliable than going in via OTC markets.

Edibles Companies List

Below is a list of edibles companies. They are not yet public companies but are still ones that I would keep careful watch over.

Should these companies list via an IPO or become targets of acquisitions by other marijuana players, I believe that gaining exposure to the edibles market through any of them would be a strong move for investors.

  • Organa Brands
  • Dixie Elixirs
  • Incredibles Edibles

Analyst Take

The best edibles companies in the U.S. are going to take some time before they become available on the market, but that day will come.

In the meantime, investors can use CannaRoyalty stock and other companies with similar connections to the market to gain exposure to the exciting growth we’re likely to see out of this subset of the legal marijuana industry.