It is no big secret that marijuana has always been a hot topic. This powerful herb has long been debated and was once thought of as a harmful gateway drug. Thankfully, a lot of that has changed and consumers are now seeing the herb in a new light. Not only is marijuana being used to treat a variety of health conditions, but it is also even being sold legally for recreational use in several states. This is truly a huge achievement for the plant and it really is no wonder that more and more investors are catching on.
Well, the market for marijuana could grow even further if Molson Coors throws their hat into the ring. Molson Coors (TAP) is a huge Canadian beer distributor, and they just announced that they are planning on releasing a non-alcoholic marijuana drink to the market. The reason for their venture is because their beer sales are dropping exponentially.
So, how is a beer giant going to get into the marijuana industry? Well, Molson Coors is going to partner with Hydropothecary, which is one of the biggest pot producers in the nation. Following the legalization of the herb, the two companies are going to work together to produce non-alcoholic, marijuana-infused beverages. For more information on marijuana and legalization in Canada, you can check out ouchclub.com.
While this is a joint venture, the two giants have decided to create this new drink as a stand-alone company. However, it will be the Molson Coors Company that takes the biggest stake – as they are claiming 57.5 percent of the business – and Hydropothecary will take the rest. Unfortunately, this is still in the works, as marijuana probably won’t be legal in the area until next year. The voting process doesn’t take place until October 17th and the two companies are looking to close their deal in September.
The demand for beer has just kept decreasing over the years, and experts are starting to think that this has something to do with the increasing sales in hard liquor. When beer companies combine this with the fact that marijuana might soon be legal, it truly looks like a good ideal to get onboard with marijuana. Maybe individuals are just looking to avoid hangovers. Whatever the situation is, beer companies need to do something – and do it fast.
The Molson Coors Company’s sales have dropped 2.4 percent during their second quarter, and they are the second largest beer company in Canada and the United States. Molson Coors isn’t the only company looking to get into this type of venture. The parent company of Corona Beer (STZ), Constellation Brands, is also looking to get into the marijuana industry. And, it is said that they plan on partnering with Canopy Growth (CGC). However, they plan on releasing their product in Canada and in the United states.
It really makes sense that the company would partner with Canopy Growth, as their stock on the New York Stock Exchange grew 1.75 percent. Tilray – another marijuana IPO – grew 3.8 percent, which really says a lot about where the marijuana industry is headed.