Canopy Growth acquires Ace Valley cannabis in bid to grow brand loyalty

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SMITHS FALLS, Ont. — Canopy Growth Corp. has purchased AV Cannabis Inc. in a bid to build more brand loyalty with customers.

The Smiths Falls, Ont.-based cannabis company says it has acquired Ace Valley, a Toronto company that makes vapes, gummies and pre-rolls.

Financial terms were not immediately available.

Rade Kovacevic, Canopy’s president and chief product officer, said his company was keen on the deal because its stores were among the first to stock Ace Valley, which quickly revealed the strength of the brand.

The Ace Valley deal adds yet another name to Canopy’s roster of brands including Deep Space, Quatreau and Doja, and partnerships with Martha Stewart and actor Seth Rogen’s Houseplant.

The deal comes as cannabis companies are facing brand loyalty challenges because of temporary pot store lockdowns triggered by COVID-19.

Companies in this story: (TSX:WEED)

Tara Deschamps, The Canadian Press