Beer, Wine, Booze and Pot – pick your poison!
Image from americancraftbeers.com
Cannabis companies are no longer penny stocks but afraid to miss the next big wave since craft beer, big alcohol companies see Green in Weed. The potential US cannabis market is estimated at $50 billion, marijuana is legal in Canada and Mexico, and Michigan became 10th state to legalize recreational use on election day – this is going to happen, it’s just a matter of time.
Constellation Brands (2nd largest US alcohol company after Anheuser-Busch) paid $191 million for 10% stake in Canopy Growth (one of world’s biggest medical cannabis companies). Constellation is selling some wine brands to fund their pot investment but that’s no surprise when you see financial results of last 6 months. Beer sales are declining year–to-year but beer sales outperform wine, and beer gross profit exceeds wine GP – 55% to 26%.
Molson Coors, one of world’s largest beer makers, entered a joint venture in anticipation of selling non-alcoholic cannabis beverages in Canada. Recreational cannabis became legal in Canada last month and the legalization of cannabis-infused edibles (includes beverages) is expected in 2019.
Image from delish.com
Lagunitas Brewing (Heineken-owned) sells HI-FI HOPS, THC-infused sparkling water in California. “This IPA-inspired sparkling beverage is made using everything Lagunitas knows about hops — but with zero alcohol, zero calories, and zero carbs. Infused with THC from the finest, sun-grown cannabis at Absolute Extracts” is the Company’s hype. Selling like hotcakes for $8/can, I gotta see on my California visit later this month.
Cheers, Bob the Wineguy
Bob the WineGuy on FaceBook, Instagram and Twitter
If you wish to receive posts by email, click this link http://BobtheWineGuy.net
