Could Budweiser consumers soon be trading beer for … marijuana?
AB InBev, the world’s largest brewer, said Wednesday that it is partnering with Canada’s Tilray to investigate the possible development of cannabis-infused beverages.
It is the last major company to begin exploring the marijuana market following decisions to legalize recreational marijuana in Canada and in several states in the United States. AB InBev and Tilray will invest $ 100 million combined in the investigation of soft drinks containing cannabis elements.
“We intend to develop a deeper understanding … to guide future decisions about potential business opportunities,” Kyle Norrington, president of AB InBev’s Canadian subsidiary, Labatt Breweries, said in a statement.
For now, AB InBev is only considering the use of cannabis ingredients in Canada. The company, whose major brands include Bud Light and Stella Artois, will make a decision on whether marijuana products are commercially viable at a later date.
Shares of Tilray, which are listed on the Nasdaq, rose after the association’s announcement, gaining about 13% pre-market on Thursday. The British Columbia-based company specializes in medicinal cannabis products.
Its shares have more than quadrupled since it was made public on Nasdaq in July. Sponsors of the company include billionaire investor Peter Thiel, venture capital firm Privateer Holdings.
Earlier this week, Tilray announced a partnership with Swiss pharmaceutical company Novartis to distribute medical marijuana in international markets.
Other major consumer brands are exploring how they can capitalize on the relaxation of restrictions on cannabis products.
With Democrats gaining control of the US House of Representatives, Congress may finally pass the Farm Bill, which would legalize hemp production and possibly open the door to more products containing cannabidiol, an item that is found in cannabis.
Earlier this month, Marlboro owner Altria announced that he is investing $ 1.8 billion in Canadian cannabis company Cronos Group. Canopy Growth, another Canadian marijuana business, received a multi-million dollar investment from the owner of Corona Constellation Brands in August.
One of the top consumer brands that are resistant to marijuana for now is Coca-Cola. CEO James Quincey said in October that “he has no plan at this stage” to enter the cannabis market.
Belgium-based AB InBev has been looking for ways to improve its sales as consumers increasingly turn to craft beers and beers from local producers. That affected sales of mass-produced beers like Budweiser and Bud Light.
Source: CNN en español
By: Daniel Shane
