The marijuana industry has remained incredibly lucrative over the course of the past several years, but new updates to legislation have meant that more outside investments are coming into the space than ever before. One of the larger players to begin coming into the market has been Molson Coors (NYSE:TAP), who wants to begin working to distribute marijuana-based drinks throughout the industry.
The beer giant has stated that they would like to get into the cannabis industry due to how lucrative it has become over the past few years, and with quarterly sales falling for the alcohol industry, it seems as though there has never been a better time to get in. Molson Coors Canada has stated that they will begin partnering with the company Hydropothecary, a large marijuana producer in Canada. The partnership will help to according to the report “pursue opportunities to develop nonalcoholic, cannabis-infused beverages for the Canadian market following legalization.”
The joint venture will be created in quite an interesting way. Rather than it being a group of the two companies, it will be a standalone venue that will be 57.5% owned by Molson Coors Canada with the rest going to the Hydropothecary. The products will not be able to be sold until recreational cannabis is legalized throughout the nation which is set to go into effect on October 17th, but the two companies are working to form the deal at least a month prior to this.
The CEO of Molson Coors Canada, Frederic Landtmeters, stated that Canada is breaking new ground in the cannabis sector and, as one of the country’s leading beverage companies, Molson Coors Canada has a unique opportunity to participate in this exciting and rapidly expanding consumer segment. This new venture is consistent with our growth strategy and our commitment to being first choice for consumers and customers by ensuring that Canadians have access to high-quality products that meet their evolving drinking preferences.”
Other companies in the space have been working to secure partnerships like the one mentioned above. These partnerships have helped to create an atmosphere of coexistence that is helping to in turn, make the industry even larger.
The company Constellation Brands (NYSE:STZ), is another company that is working to secure themselves in the cannabis industry. As the parent company of Corona Beer, the company has been creating a large stake for itself in the Canadian cannabis industry by investing in companies such as Canopy Growth (NYSE:CGC). The company would also like to make cannabis-infused beverages, which is becoming an even larger part of the market share of the cannabis industry. Canopy Growth has been at the forefront of growth in the cannabis space since they became the first cannabis stock to be listed on the NYSE that deals only in the growth of cannabis as a plant. The company has been growing with a massive amount of propensity toward the future ever since.
As the marijuana industry is able to continue this massive growth toward the future, it will remain interesting to see how these partnerships continue to play out on the larger scale. Only time will tell how much the industry can benefit from this massive growth as companies begin to research new methods of using the cannabis plant, and produce new products for sale to the general public. The only aspect now that individuals are waiting on is the introduction of legislation on a larger scale. The hopes are high that all of these factors will continue to aid growth as we move toward the next few years.
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