Molson Coors is the latest company to jump into the pot market with plans to develop a non-alcoholic brew infused with cannabis.
The company announced Wednesday it’s joining with the Quebec-based company HEXO, a sister firm to Hydropothecary Corp., a Canadian medical cannabis company, to create a new firm that will produce and distribute the new beer.
Although marijuana-based products like edibles and drinks will be illegal until 2019 although smokable cannabis will be legal in October, Molson Coors Brewing Company announced its entering the joint venture structured as a standalone start-up with a board of directors.
Molson Coors will hold a 57.5 per cent controlling stake, while HEXO will control the rest, the statement says.
The new company will combine the experience of Canada’s second leading brewer with a recognized innovator in the fast-
growing cannabis sector to explore the highly anticipated consumable cannabis market.
President and CEO of Molson Coors Canada Frederic Landtmeters stated legalization offers a big opportunity for the brewer to participate in what may be a 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,” Landtmeters said.
“HEXO continues to lead the way for smoke-free cannabis innovation in Canada. We are excited about this partnership with Molson Coors Canada as we embark on the journey of building a brand-new market,” HEXO said in the statement.
“HEXO and Molson Coors Canada have established a relationship built on trust, and together we will develop responsible, high-quality cannabis-infused beverages for the consumable cannabis market in Canada,” said Sebastien St-Louis, co-founder of HEXO.
The deal will be officially closed before Sept. 30 and is subject to various approval conditions including execution and governance documents.
HEXO and Molson Coors Canada are proud to announce an exciting new joint venture for the future consumable cannabis market.
— HYDROPOTHECARY (@Hydropothecary) August 1, 2018