WHAT’S BEING CLAIMED:
- The recreational use of marijuana was made legal in Canada back in October.
- Two companies, AB InBev, through Labatt Breweries, and Tilray, have announced that they will be working together on a $100 million project studying non-alcoholic drinks with cannabis.
- The market for cannabis is growing and companies like Constellation Brands have also invested money in it. Other companies like Coca-Cola and Pepsi have said that they are monitoring the cannabis market as it grows.
On Wednesday, a $100 million deal was made between the company that makes Budweiser and Tilray- a company that works with the production of medical cannabis. This deal follows the legalization of the recreational use of marijuana in Canada back in October. Each company will be investing $50 million each to the research of drinks infused with cannabis for the Canadian market.
The project will involve the study of cannabidiol, which is said to have calming and healing effects, as well as THC, the compound in marijuana that has psychoactive effects, and their infusion in non-alcoholic drinks.
Belgium-based AB InBev, the owner of hundreds of beer brands including Budweiser, will be participating in the project through a subsidiary- Labatt Breweries. Kyle Norrington, president of Labatt, says that the company is “committed to staying ahead if emerging consumer needs.”
Tilray, based in British Columbia, operates in Australia, New Zealand, Canada, Germany, Portugal, and Latin America. The company also distributes its products in 12 different countries.
The cannabis industry is growing with the legalization of its recreational use starting in Canada and spreading to the States. Canada is currently the world leader. Arcview Market Research, an investment firm focused on cannabis, expects consumer spending on legal marijuana to increase drastically in North America- from $9.2 billion to $47.3 billion in the next ten years.
Back in August, Constellation Brands, a liquor and beer company made its own investment in a Canadian cannabis producer- Canopy Growth Corp.
Other companies have mentioned that they are keeping a close eye on the cannabis market as it continues to progress. These companies include Coca-Cola, Pepsi, and another brewer Diageo.
Source: ABC News