Beer Brewer AB InBev (NYSE:BUD) has joined the list of the many companies who are exploring the cannabis industry. The world’s largest brewer has established a partnership with Canadian pot firm Tilray Inc. (NASDAQ:TLRY). Each of the two will put in up to $50 million as an investment. In total, they will raise $100 million, which will go towards the study of non-alcoholic beverages containing THC and CBD.
The partnership is however limited to Canada given that marijuana edibles and beverages are yet to become legal in Canada. Nonetheless, the duo’s research will be exploring how to incorporate recreational cannabis into the market. The two have different levels of experience in dealing with beverages and cannabis products. On the other hand, they both share an obligation of responsible product development and marketing.
AB InBev and Tilray believe in a market which recognizes THC and CBD beverages
Brendan Kennedy, Tilray’s chief executive is optimistic about being able to transition the current state of prohibition into a state of legalization. This may not be an easy task given that some regions are still holding onto cannabis being illegal. However, several US states, including California and Colorado, have legalized recreational pot use.
The push continues according to Kennedy who says, “We are delighted to be joining forces with a world-leading beverage company, AB InBev, to research how to create enjoyable cannabis beverage products.”
The growing cannabis space continue to create interest among other brewers
As regulators continue to loosen their belts on the legalization of cannabis, many brewers are dipping their toes into the industry. Constellation Brands has invested $4 billion in Canopy Growth, which is Canada’s largest medical marijuana producer. Another is Molson Coors Brewing Co, which has entered a joint venture with Hexo Corp.
Altria Group Inc. (NYSE:MO), a tobacco company, has put in a $1.8 billion investment in Cronos Group Inc. (NASDAQ:CRON) On the side, Tilray has also partnered with Sandoz AG, a unit belonging to Novartis (NYSE:NVS). Together, they will produce and distribute medical cannabis products.
All said and done, Tilray, based on Vancouver Island, has expressed positivity in being able to solve numerous problems with the cannabis industry. The company claims that the problems have slowed the adoption of cannabis-infused beverages.