Molson Coors, one of the world’s largest beer companies, is entering a joint venture with Canadian marijuana producer, The Hydropothecary Corporation, to make non-alcoholic cannabis-infused beverages.
As part of the deal, Molson Coors will retain a controlling interest in the joint venture. The venture will be structured as a standalone company that will have an independent board of directors and management team. The deal is expected to close by the end of September.
Frederic Landtmeters, the President and CEO of Molson Coors Canada stated, “Canada is breaking new ground in the cannabis sector and, as one of the country’s leading beverage companies, Molson Coors Canada has a unique opportunity to participate in this exciting and rapidly expanding consumer segment.”
“While we remain a beer business at our core, we are excited to create a separate new venture with a trusted partner that will be a market leader in offering Canadian consumers new experiences with quality, reliable and consistent non-alcoholic, cannabis-infused beverages,” he continued.
“We believe that the merger of the cannabis and beverage industries hold great potential for investors looking to reap the benefits of innovation in the space,” remarked group of analysts at Beacon Securities.
Canada will legalize marijuana on October 17th. Molson Coors expects cannabis beverages however to be legal by 2019.
