Dagga-infused drinks on way

Marijuana producers are increasingly looking to beverages as products that consumers might buy more of if infused with cannabis.

Green Organic Dutchman Holdings plans to develop a product-testing and manufacturing centre to explore using cannabis in everything from iced teas, juices and sports drinks, the company said on Wednesday. That is just the latest move by pot producers to get a footing in beverages.

While Canada has yet to pass the legislation that will make some forms of recreational marijuana legal in 2018, including dried bud for smoking, firms are already jockeying for position in the potentially lucrative beverage market. Although edible products such as sweets, beverages, ice cream and baked goods will not be legal for at least another year, there has been an “explosion of interest” in them, and six out of 10 consumers will probably choose to consume them, according to a June 5 report from Deloitte.

“Many consumers are used to drinking intoxicants as it is more socially acceptable to smoking or vaping,” Jason Zandberg, an analyst at PI Financial in Vancouver, said. “I do believe cannabis-infused beverages will be a strong product category in Canada when this edible category is allowed.”

Beer and alcohol makers have taken notice and “are looking into their rear-view mirror” at the potential threat, Charles Taerk, CEO of Faircourt Asset Management in Toronto, said in a June 5 cannabis webinar.

The combined medical and recreational marijuana market could be worth as much as $7.7bn in the next five to seven years, he said.