Upcoming Canadian Consumables Market Expected This
Fall: #Beer and #Cannabis Combine (CSE: $SPR.C) (OTCQB: $SRUTF) (NYSE: $CGC)
(TSXV: $BEER.V) (NYSE: $HEXO)
Point Roberts WA, Delta BC – May 1, 2019
(Investorideas.com Newswire) Investorideas.com, a leading investor news resource covering hemp and
cannabis stocks releases a snapshot looking at cannabis-infused beer JV's and
distribution partnerships as they ready themselves for the upcoming Canadian
consumables market, as regulations are expected to permit this October.
Recently one of the
largest cannabis beverage partnerships involving Canopy Growth Corp. (NYSE:CGC) (TSX: WEED) and Constellation Brands, Inc. announced that they have agreed to make some changes
to various warrants and rights.
The new agreement to
change some of the warrants and rights that influence their partnership is
believed to have been influenced by Canopy’s plans to acquire Acreage Holdings
Inc. Another key factor that influenced the decision by Constellation Brands
and Canopy Growth to review the warrants and rights is the chance of cannabis
legalization by the federal government.
The attention surrounding cannabis-infused beers is bringing in new
players such as Sproutly Canada, Inc. (CSE: SPR) (OTCQB: SRUTF), and Moosehead Breweries Limited, who just announced that they have entered into a definitive
agreement to form an exclusive joint venture to develop, produce, and market
cannabis-infused beverages in Canada using Sproutly’s acquired proprietary,
naturally produced water-soluble cannabinoids known as Infuz2O.
Moosehead, the oldest
and largest Independent Beer Company in Canada, brings over 152 years of
beverage experience in building and operating adult beverage businesses in
Canada, an established national supply chain and distribution capabilities in
all provinces with a large sales and marketing team and the Oland family’s proven ability in
building and marketing industry leading adult beverage brands such as Moosehead
and licensed and supporting brands such as Alexander Keith’s, Angry Orchard and
Twisted Tea.
Sproutly’s Infuz2O
can deliver the cannabis effect within 5 minutes and last up to 90 minutes,
providing a similar experience timeframe to beer, while also producing a clear
cannabis beverage that is much easier and faster to formulate than many of its
competitors who will be using emulsifiers, encapsulation or chemically modified
techniques to strangely mirror solubility.
“With the anticipated
legalization of edibles in Canada later this year, Moosehead has made the
strategic decision to enter the cannabis beverage market. As one of the oldest
brands in Canada and a leader in the beer category, we believe we are uniquely
positioned to be a leader in the cannabis beverage category.” said Andrew
Oland, Chief Executive Officer of Moosehead. “As a 152 year old company
spanning six generations, we are very selective about new business
opportunities. After a significant amount of due diligence on Sproutly’s APP
technology and Infuz2O water soluble cannabinoids vs other
competitive technologies, we are excited to announce this joint venture. With
their advanced technology and our long-standing product development experience,
we expect to bring to Canadian consumers cannabis beverages that address the
major issues currently limiting appeal of this category in other markets; a
beverage that: 1) actually tastes good; and 2) provides an immediate and
controllable cannabis experience lasting up to 90 minutes.”
“After careful analysis of the cannabis industry and the cannabis
beverage opportunity in Canada, we believe that Moosehead and Sproutly together
are well positioned to become a significant player in the category.” said
Matthew Oland, incoming Chief Executive Officer of the Joint Venture. “The JV’s
ability to leverage Moosehead’s rich history of building adult-beverage brands,
and its established R&D and operational infrastructure, will enable the JV
to bring great tasting cannabis beverages to Canadian consumers. The Infuz20
technology delivers a natural cannabis beverage experience, with an onset and
offset time similar to traditional flower cannabis, without the need for
chemical modification. We believe this will be a game changer for the sector.”
Lexaria Bioscience Corp., who
develops and licenses DehydraTECH, a patented lipid nutrient infusion
technology that improves taste, rapidity, and delivery of bioactive compounds
that include cannabinoids, vitamins, NSAIDs, nicotine, and other molecules, has
also been looking into the beverage sector for quite some time, having partnered with Hill Street Beverage Company Inc. (TSX-V:BEER) (OTC: HSEEF)
Hill Street CEO Terry Donnelly recently discussed the company’s first quarter which showed
the company’s revenue was up 100 percent YOY and the company is tracking 35
percent annual revenue growth for 2019. Donnelly also discussed how Hill Street
has used its line of non-alcoholic beer and wine to drive its brand recognition
ahead of the legalization of infused beverages in the fall. Hill Street uses
Lexaria’s DehydraTECH to create infused beverages which allows for 5 to 10
percent greater availability of THC and ensures consumers feel the beverage’s
full effect in 15 minutes.
A sleeping giant in this same sector that is surrounded by
market anticipation is Truss, the JV of Molson Coors Canada, the Canadian business unit of Molson Coors Brewing
Company, and HEXO Corp. (NYSE: HEXO) (TSX: HEXO) who announced their partnership back in August 1, 2018, to
develop non-alcoholic, cannabis-infused beverages for the Canadian market
following legalization.
“With the backing of
two partners with deep Canadian roots, proven success, and market-leading
experience in the respective beverage and cannabis industries in Canada, Truss will hit the ground running,” said
Brett Vye, Chief Executive Officer at Truss. “When consumable cannabis is
legalized in Canada, Truss will be
ready to make its mark as a responsible leader in providing high-quality
beverages for the Canadian consumer. Why
“Truss”? We are joining together the
extensive experience and excellent practices of each partner to build a
powerful foundation for the future.”
This combination of
experienced beverage providers with cannabis technology companies allows for
all of these companies to have the best of both worlds. As these JV’s ready
themselves for October the only big question is what the finalized regulations will permit and how these companies may have
to alter their approach to match them.
For investors
following cannabis stocks, Investor Ideas has created a stock directory of publicly traded CSE, TSX, TSXV, OTC, NASDAQ, NYSE, ASX
Marijuana/Hemp Stocks
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