Molson Coors joint-venture with Hydropothecary opens door for other potential pot deals for brewer
As the Oct. 17 legalization date for recreational marijuana creeps closer, ties between pot companies and the alcohol industry seem to be getting stronger.
Cannabis beverages and edibles aren’t expected to become legal until 2019, but pot firms and booze producers and distributors are looking to get ahead of the curve.
Here’s a look at some of the major alcohol-pot plays that have been made so far.
Molson and Hydropothecary
Molson Coors announced Wednesday it's teaming up with Quebec-based Hydropothecary Corp. to develop cannabis-infused, non-alcoholic beverages. Under the terms of the agreement, Molson Coors Canada will hold a controlling 57.5 per cent stake in the partnership. BNN Bloomberg first reported in June that Molson had engaged in talks with as many as four marijuana producers over a six-month period to explore opportunities in Canada's soon-to-be legal recreational cannabis market.
Alcanna and Aurora
In February, Aurora Cannabis bought a stake in Liquor Stores N.A., which has since changed its name to Alcanna. Under the deal, the Edmonton-based licensed marijuana producer initially acquired a 19.9 per cent stake in the liquor store operator for $103.5 million. Aurora later boosted its ownership interest to 25 per cent and could eventually raise its stake to 40 per cent. Proceeds from the investments will help finance Alcanna’s cannabis retail stores.
Constellation Brands and Canopy
Corona beer distributor Constellation Brands Inc. invested $245 million for a 9.9 per cent stake in Canada’s largest licensed cannabis producer, Canopy Growth, last year. At the time of the announcement, the two companies said they’d work together to make cannabis-based drinks for distribution in jurisdictions where those products are legal.