Tilray and AB Inbev (Budweiser): $100 million partnership to create cannabis drinks

Canadian medical cannabis producer Tilray has embarked on a joint venture with AB InBev, the world's largest brewing group (in terms of beer volume brewed), to produce cannabis-based beverages. The two companies are each investing $50 million. They will make joint decisions regarding the future production and marketing of their products in the Canadian market.

The booming cannabis beverage market

The goal of the partnership is to produce non-alcoholic beverages containing THC and CBD. This is an opportunity that many market players are seeking to capitalize on. Cannabis-infused beverages are already on the market in the United States, such as the Lagunitas de Heineken in California, but they are usually made by steeping. Recently, Provincial Brands, A Canadian company has developed and patented a process for brewing beer directly with cannabis plants, thereby preserving the flavor.

For now, these beverages cannot be sold in Canada because the edibles are not yet legal But companies are positioning themselves to capitalize on this market segment, which is proving to be very promising. Many beverage giants are taking a close interest in the cannabis industry. At this time, the largest investment comes from Constellation Brands, the maker of Corona, which has invested nearly $4 billion in Canopy Growth, one of Canada's largest cannabis producers.

It is a subsidiary of AB InBev based in Canada, Labatt Breweries, who will take part in this joint venture. Its president, Kyle Norrington, said, «Labatt is committed to responding to emerging consumer trends.» The announcement of this partnership on Wednesday caused Tilray’s stock to rise by 19%. Already on Tuesday, Tilray had confirmed its partnership with the Swiss pharmaceutical company Novartis for the production and distribution of cannabis-based medications. This announcement had caused a 22% increase on the stock market. Tilray is on a roll right now!