Canopy Growth Sells Former Hershey Factory to Hershey Canada for $53 Million
Canopy Growth has sold its Smiths Falls cannabis facility back to Hershey Canada for $53 million, marking a significant turn of events for the town
Key Points
- 1Canopy Growth sells Smiths Falls facility to Hershey Canada for $53 million
- 2The facility was originally a Hershey's chocolate factory built in 1964
- 3Smiths Falls community welcomes Hershey's return, seeing economic potential
- 4Canopy Growth continues operations nearby, focusing on post-harvest production
- 5Hershey Canada plans strategic growth but details remain undisclosed
In a significant turn of events, Canopy Growth has announced the sale of its primary cannabis cultivation facility in Smiths Falls, Ontario, back to its original owner, Hershey Canada. The facility, located at 1 Hershey Drive, was initially a chocolate factory built by Hershey in 1964 before being sold in 2007. The transaction is valued at $53 million, marking a strategic move for both companies involved
Canopy Growth's decision to sell comes as part of its broader efforts to streamline operations amid a challenging cannabis market. The company had previously used the facility as its headquarters during the burgeoning cannabis industry boom following the legalization of recreational marijuana in Canada. At its peak, Canopy Growth even launched a line of pot-infused chocolates, paying homage to the site's confectionery roots
The sale has been met with enthusiasm in the local community, particularly from Smiths Falls' mayor, Shawn Pankow. He noted the historical significance of Hershey's return, highlighting the nostalgic value and potential economic benefits for the town. "Of all the potential opportunities that could have landed here, the fact that it’s Hershey is probably more heart-warming for the community," Pankow remarked, reflecting the sentiment of many residents who remember the factory's original heyday
While Hershey Canada has confirmed the purchase as a strategic investment to bolster its Canadian operations, specific plans for the facility remain under wraps. Jason Reiman, Hershey Canada's chief supply chain officer, described the acquisition as a move to strengthen their presence in Canada. However, details regarding future employment and production at the Smiths Falls site are yet to be revealed, with a company spokesperson stating that it is too early to discuss such plans
Canopy Growth, meanwhile, will maintain a presence in Smiths Falls, continuing its operations in a facility across the road from the former chocolate factory. This move allows the company to focus on post-harvest production while reducing its overall footprint. The sale signifies a pivotal moment for both Canopy Growth and Hershey, as each company navigates its path forward in their respective industries