Breaking News: The Multi-Billion Dollar US and Canadian CBD-Infused Beverage Race is On: Tilray, Coca Cola, Molson Coors Brew...
January 14 2019 - 10:30AM
OTCMarketsinsider.com News Commentary
2019 is poised to be a pivotal year for the
cannabis-infused-beverage market. Investors seeking to profit from
the early growth of this new opportunity have plenty of options to
choose from.
Canaccord’s Bobby Burleson and Jonathan DeCourcey claimed that
infused beverages could be poised to outpace general demand for
marijuana products by two fold, taking 20% of the existing market
for cannabis edibles by 2022.
Canadian cannabis company Tilray entered a $100 million joint
venture with beer brewer AB InBev to study cannabis-based
beverages. The joint venture, in which both companies will invest
$50 million, will study non-alcoholic beverages containing THC, the
psychoactive chemical compound in marijuana, as well as CBD, the
non-active chemical.
Heineken also launched a JV in California's, the world's biggest
marijuana market. In June 2018, Heineken subsidiary Lagunitas
announced a partnership with cannabis company AbsoluteXtracts to
market cannabis-infused sparkling water products under the brand
name Hi-Fi Hops. The products became available to consumers in July
2018. One version of Hi-Fi Hops contains 10 mg of THC, while the
other contains 5 mg of THC and 5 mg of CBD.
Coca-Cola Co. said it’s eyeing to enter the CBD market, becoming
the latest beverage company to tap into surging demand for
marijuana products as traditional sales slow. Coca-Cola says it’s
monitoring the nascent industry and is interested in drinks infused
with CBD.
Last August, Molson Coors entered into a joint venture with
HEXO, a Quebec-based marijuana cultivator, to produce
cannabis-infused beverages for the Canadian market. Canada
legalized marijuana for all adults on October 17, though products
like beverages, edibles, and vaporizers won't be available until
the fall of 2019.
The CEO of Molson Coors is bullish on cannabis-infused
beverages. During the company's third-quarter earnings call, CEO
Mark Hunter said the cannabis market could total $7 billion to $10
billion in Canada alone. Nonalcoholic cannabis-infused beverages
could account for as much as $3 billion, or 30% of the total
market.
Mark Hunter said Molson Coors, through the joint venture, was
"well-placed" to take a meaningful share of that market when it
opens up. "We decided as a business that we did not want to be a
spectator as this new market opened up," Hunter said. "And we
clearly wanted to be a participant."
American Premium Water Corporation, a company with one foot
already in the growing CBD beverage market with its LALPINA Hydro
CBD water, announced in October that it developed a formulation
using its proprietary Hydro-Nano technology for THC. In December it
announced they had entered into an agreement with Growpacker, a
California based company that does infusion and fulfilment in the
CBD and cannabis sector. Growpacker has a number of relationships
with dispensaries in the state, and provides the distribution
network for the Company to sell into the US’s largest marijuana
market.
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