Molson enters into joint venture to develop cannabis-infused drinks

Molson Coors Canada has entered into a joint venture to develop non-alcoholic, cannabisinfused beverages, making it the latest big alcohol company to turn its eye to the budding marijuana market. The business arm of Molson Coors Brewing Co. said Wednesday the venture with The Hydropothecary Corporation, now branding itself as HEXO, will be a standalone start-up with its own board and management team, with Molson Coors Canada having a 57.5 per cent interest and HEXO holding the balance. “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,” said Molson Coors Canada president and CEO Frederic Landtmeters. “Molson Coors Canada has a unique opportunity to participate in this exciting and rapidly expanding consumer segment,” he said. The deal comes ahead of Canada’s move to become the second country in the world to legalize recreational marijuana at the federal level and many companies are scrambling to take part in the resulting market opportunities. Other alcohol companies have also been circling Canadian marijuana companies amid falling beer consumption in Canada and concerns that the buzzy and soon-to-be legal drug could take a further bite out of booze sales. In May, marijuana producer Aphria Inc. said it has reached a deal that will see Southern Glazer’s Wine & Spirits, one of North America’s largest wine and spirits distributors, become its exclusive distributor of recreational cannabis products in Canada.