With finalized regulations for legalized edibles just around the corner, the licensed cannabis industry is gearing up to begin production on a variety of new products, from drinks to candies to chocolate.
In an effort to prepare for that upcoming industry change, Organigram Holdings Inc. (TSX-VE: OGI; OTCQX: OGRMF) today announced a $15 million investment towards an automated chocolate assembly line.
That planned robotic construction, labeling, and shipping system will be up and running this coming fall, and is expected to reach a production capacity of 4 million kg of chocolate cannabis product per year.
Discussing the scale of the investment and the company’s plans for chocolate edibles, Chief Executive Officer Greg Engel commented:
That team includes Organigram’s existing Senior VP of Operations Jeff Purcell, who previously worked for Canadian candy company Ganong Bros Limited.
In addition to Purcell’s experience working with chocolate, Organigram has now recruited Mouna Gharsallah from Tunisian confectionery Sotuchoc, as well as Ginette Ahier from artisanal chocolatier Adorable Chocolat.
Those two new additions to the Organigram team will focus on cannabis-infused chocolate research for new products, as well as marketing chocolate-based edibles.
How big an impact the addition of legalized edibles will make on the Canadian cannabis industry remains somewhat of a question mark, with recent studies showing that consumers want more choices beyond dried flower marijuana, but with an overall dip in enthusiasm towards edibles in particular.
The success of adding edibles to an existing lineup of products may depend on currently unknown specifics on packaging and production regulations.
While the company gears up to begin producing edibles as proposed regulations from Health Canada are expected to arrive in October, Organigram is also celebrating another major milestone this week. Beginning with the open of business tomorrow – May 21, 2019 – Organigram Holdings will officially leave the OTC Markets and begin trading on NASDAQ under the ticker symbol OGI.
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