BioSteel's Financial Downfall Under Canopy Growth
BioSteel, once a rising star in the sports nutrition market, faced a spectacular downfall that ultimately led to its bankruptcy and subsequent acquisition. The trouble began after cannabis giant Canopy Growth acquired a majority stake in BioSteel in 2019, with the goal of expanding into the sports nutrition and CBD-infused beverage markets. For a time, BioSteel thrived, with impressive marketing partnerships, including a significant deal with the NHL.
However, this aggressive, high-cost strategy proved unsustainable. Mounting financial losses and mismanagement plagued the brand. In the fiscal year leading up to the bankruptcy, Canopy Growth revealed that BioSteel was responsible for a substantial portion of its financial struggles. Issues including misstated revenue, an SEC investigation, and heavy cash burn contributed to the brand's eventual collapse.
The Court-Approved Sale and Acquisition
In September 2023, Canopy Growth ceased funding BioSteel and sought bankruptcy protection for the brand under the Companies' Creditors Arrangement Act (CCAA). This initiated a court-supervised sale process to find a new owner.
The sale was ultimately split into two transactions to offload BioSteel's assets. An Ontario court approved the sale in November 2023, with the completion announced in December.
The New Ownership Structure
- The Coachwood Group (DC Holdings Ltd.): This company, led by Canadian entrepreneur Dan Crosby, acquired the primary operational assets and intellectual property of the BioSteel brand in Canada, the U.S., and globally. Crosby, who also owns the sports nutrition company Canadian Protein, has since focused on restructuring and rebuilding the brand's profitability.
- Gregory Packaging Inc.: The US-based manufacturer, known for SunCup juice cartons, won the bid for BioSteel's manufacturing facilities and related machinery in Verona, Virginia. A representative from Gregory Packaging clarified that the company only purchased the factory assets and not the BioSteel brand itself.
BioSteel's Revival Under Dan Crosby's Leadership
Since the acquisition, Dan Crosby has focused on turning the company around. He recognized the brand's strong foundation and brand awareness built by the previous owners but has implemented a leaner, more strategic approach to ensure profitability.
Strategic Shifts Implemented Post-Acquisition:
- Focus on Profitability: Moving away from the high-spending marketing of the past, the new leadership has focused on sustainable business practices.
- Operational Streamlining: The company has consolidated logistics and cut unnecessary costs to improve efficiency.
- Re-establishing Retail Partnerships: Under Crosby, BioSteel has successfully regained shelf space with key retailers like Costco and Canadian Tire.
- Product Innovation: The company has invested in new product lines, such as its first-ever protein RTD.
Comparison of BioSteel Eras
| Feature | The Canopy Growth Era (2019-2023) | The Coachwood Group Era (2023-Present) |
|---|---|---|
| Primary Goal | Market entry into cannabis-infused beverages; aggressive brand awareness | Brand revitalization, sustainable profitability, operational efficiency |
| Financial Performance | Unprofitable, high cash burn; heavy losses for parent company | Currently profitable; refocused on revenue-generating accounts |
| Marketing Strategy | High-cost, celebrity athlete endorsements and major league sponsorships (e.g., NHL) | Leaner, more targeted marketing; partnerships with influencers and youth sports |
| Retail Strategy | Expanded shelf space, but struggled with profitability | Regained shelf space in key retailers like Costco, focusing on profitable relationships |
| Management | Accused of mismanagement and unsustainable practices | New leadership under Dan Crosby, with a focus on efficiency and growth |
The New Vision for BioSteel
Dan Crosby's Coachwood Group aims to leverage BioSteel's already massive brand awareness, built during the Canopy Growth era, and combine it with a more fiscally responsible and strategic business plan. This involves focusing on core products, optimizing distribution, and expanding its reach in a controlled, profitable manner. Crosby has expressed his commitment to maintaining the brand's reputation for clean, effective hydration products. The rapid return to profitability and re-establishment in retail stores demonstrates a positive shift for the company.
Conclusion
In summary, Canadian entrepreneur Dan Crosby, through his Coachwood Group of Companies, bought the intellectual property and brand of BioSteel in a court-approved sale in December 2023. This came after the company’s previous owner, Canopy Growth, ceased funding and filed for bankruptcy on BioSteel’s behalf following a period of extensive financial losses and mismanagement. The acquisition marked the end of a turbulent period for BioSteel and the beginning of a new chapter under more disciplined leadership, with a renewed focus on profitability and sustainable growth.
Post-Acquisition Updates
The new ownership has wasted no time in revitalizing the brand. In June 2025, BioSteel reentered the market with a protein RTD, highlighting its focus on product innovation. The company has also secured its presence in major retailers across Canada, including becoming a top seller in Costco.
The Path Forward for BioSteel:
- Building on Brand Recognition: Leveraging the extensive brand awareness already established.
- Strategic Marketing: Focusing on profitable campaigns and partnerships.
- Expanding Retail Presence: Cementing relationships with major retailers.
- Sustainable Growth: Prioritizing long-term profitability over aggressive, costly expansion.
