SANTA BARBARA, Calif., April 1, 2018 /PRNewswire/ -- CANNDESCENT, California's #1-selling brand of cannabis flower in 2017, announced today that it has purchased Veuve Clicquot. The transaction, the first on Canndescent's list of undisclosed targets, is also the first publicly reported transaction of its nature since California opened to adult-use cannabis sales in 2018. The purchase price was not disclosed, but Canndescent officials acknowledge paying a healthy premium reflective of Veuve Clicquot's status as a leading luxury brand.
The surprise announcement comes at a time when cannabis stocks are soaring and category growth in alcohol may have slowed. Moreover, the acquisition turns on its head what many suspected was a trend started by Constellation Brands' investment in Canopy Growth, where Big Alcohol would buy cannabis companies. In contrast, this is a cannabis company buying alcohol. Offering comment, Adrian Sedlin, Canndescent's CEO, said, "We have the deepest respect for the House of Veuve Clicquot and see benefit to offering two luxury brands."
For many cannabis industry observers, the purchase comes as a shock because Canndescent has been a vocal proponent in the "cannabis vs. alcohol" debate. As recently as last week, Rick Fisher, Canndescent's Chief Operating Officer, was quoted saying, "Compared to alcohol, cannabis is zero-calorie, has lower addiction rates, lower mortality rates, a much lower withdrawal profile, and works harmoniously with the body's endocannabinoid system." When asked if he envisioned dual consumption or a THC-infused champagne or sparkling wine, Mr. Fisher stated, "Definitely, not! We endorse responsible consumption, and the impacts of commingling alcohol and cannabis requires further study. This said, we recognize some people like chocolate and others like vanilla, so we support the diversity of choice at all functions and venues."
Market reaction to the news is still undetermined but Canndescent advisor, Ron L. McDonald, said, "We support management's vision of a wide offering and think the company should acquire more products within the food and beverage complex." In related market news, buyers seem to be speculating on Canndescent's undisclosed targets as there has been a rush on potato salad, sporks, and cocktail weenies at its local Costco Wholesale.
For more Information, please visit www.canndescent.com/AprilFools or email DaennyTargaryen@canndescent.com
About CANNDESCENT
Canndescent (pronounced Can-Des-Ent) cultivates ultra-premium cannabis flower for the adult-use, market, and was California's #1-selling flower brand in 2017 according to BDS Analytics. In 2016, Canndescent became the first cultivator in the world to abandon traditional strain names, implementing a more shoppable, strain architecture of Calm, Cruise, Create, Connect and Charge. The company produces over 10,000 pounds of cannabis each year and is a market leader in luxury cannabis. Consumers can purchase Canndescent products at leading dispensary and delivery services throughout California and can learn more about the company at www.canndescent.com.
This release is an April Fools' release and should be taken as such by readers and the media.
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SOURCE CANNDESCENT