Crosby's Molasses making 'slow and steady' dip into cannabis edibles
President of Saint John-based company says he's taking a 'longer-term timeline' on new venture
Much like its flagship product, the head of Crosby's Molasses says the company's foray into cannabis edibles will be "slow and steady."
James Crosby is also president of EYG Consumables, a subsidiary of Crosby's with plans to incorporate water-soluble cannabis products like CBD and eventually THC into powdered drinks like hot chocolate, iced tea, and fruit juices.
EYG stands for "Eat Your Greens," a reference to cannabis plants.
Crosby is the fifth generation of his family to run the long-standing molasses company, which is one of the oldest businesses in Canada.
Legalizing cannabis edibles
Crosby's Molasses was launched in Yarmouth, N.S., and moved to Saint John in 1897. It has been a fixture on what is now Rothesay Avenue in east Saint John since 1911.
Its Fancy Molasses is a well-known brand nationally and internationally.
Earlier this month Health Canada legalized cannabis edibles, extracts, and topicals.
But it will be at least another few weeks before these new products are available to consumers. The federal regulator requires 60 days notice before making a new product available for sale.
EYG Consumables specifically is seeking an industry partner that can supply a water-soluble powder with known and consistent concentrations of the active ingredient in cannabis.
Crosby says finding that partner hasn't been easy, and until it's secured, he's not willing to break ground on a new building for EYG.
He has, however, purchased a lot in Saint John's Grandview Industrial Park and is making plans to build a 15,000 square foot plant there.
A slow and steady process
He's not the least bit worried about being left behind in the race for space in the consumables market.
"As a private company we have the luxury of time," said Crosby.
"We operate with a long-term mindset. We're not out there trying to beat our quarterly projections. We can be patient and we can take a longer-term timeline on this."
So far, Crosby says the only real investment made by EYG has been hiring people to develop the product and the brand.
In the big picture, he predicted a shakeup coming to Canada's cannabis industry, suggesting an oversupply of legal pot has led to slumping revenues while investment money dwindles.
"I don't think all the companies that are out there cultivating today have healthy enough balance sheets to last," he said.
"So I believe we're going to see some business failures. And we're going to see some mergers and acquisitions over the coming months."
Listen to James Crosby, the president of EYG Consumables, discuss his company's strategy around getting its products into the market.
ABOUT THE AUTHOR
