Molson Coors, HEXO develop cannabis-infused beers

Molson Coors, HEXO to develop cannabis-infused beers

6:00 AM, 21st August 2018
Cannabis-infused beer. (File photo)
Cannabis-infused beer. (File photo)

TORONTO, CANADA: Molson Coors Brewing Company said that its Canadian business unit has entered into an agreement to develop cannabis-infused beverages, following legalization. Marijuana use in Canada will become legal later this year.

Molson Coors Canada is teaming with leading Canadian cannabis producer, The Hydropothecary Corporation (HEXO), to form a joint venture, to pursue opportunities to develop non-alcoholic, cannabis-infused beverages.

The joint venture will be structured as a standalone start-up company with its own board of directors and an independent management team. Molson Coors Canada will have a 57.5 percent controlling interest in the JV, with HEXO having the remaining ownership interest.

The new company will combine the proven beverage experience of Canada’s leading brewer with a recognized innovator in the fast-growing cannabis sector to explore the highly anticipated consumable cannabis market, which is expected to be legally permissible in Canada in 2019.

Closing of the transaction is expected before 30 September 2018.

“Canada is breaking new ground in the cannabis sector and, as one of the country’s leading beverage companies, Molson Coors Canada has a unique opportunity to participate in this exciting and rapidly expanding consumer segment. This new venture is consistent with our growth strategy and our commitment to being First Choice for Consumers and Customers by ensuring that Canadians have access to high-quality products that meet their evolving drinking preferences,” said Frederic Landtmeters, president and CEO of Molson Coors Canada.

“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. We look forward to partnering with HEXO, a recognized leader in the medical cannabis space in Canada that will bring robust production capacity, a track record of innovation, and, most importantly, shared values when it comes to doing business the right way and earning the trust of consumers,” added Landtmeters.

“HEXO continues to lead the way for smoke-free cannabis innovation in Canada. We are excited about this partnership with Molson Coors Canada, an iconic leader in adult beverages, as we embark on the journey of building a brand-new market. With this new company, we are bringing together Quebec’s oldest, most established company with one of its newest success stories in a truly innovative partnership. Together we will develop responsible, high-quality cannabis-infused beverages for the consumable cannabis market in Canada,” added Sebastien St-Louis, CEO and co-founder of HEXO.

Cannabis is a natural, complex plant with over 400 chemical entities of which more than 60 of them are cannabinoid compounds (psychoactive chemicals). The main active chemical is Tetrahydrocannabinol (THC), one of the oldest hallucinogenic drugs known. The cannabinoids belong to a class of chemicals called terpenoids. These compounds occur as essential oils within many plants and some are involved in the formation of vitamins, steroids, pigments and odours.

The perfume industry relies on compounds such as these, and they also find a variety of uses in the food, beverages and pharmaceutical industry as flavours and odour improvers.

Together with tobacco, alcohol and caffeine, Cannabis is one of the most widely consumed drugs throughout the world.

According to a new report by Deloitte, the total Canadian cannabis sales would exceed $7 billion in 2019 after legalization. Canadians are expected to spend as much as $7.17 billion on cannabis products in 2019 and increase their overall consumption by up to 35 percent once recreational cannabis is legalized later this year.

© Worldofchemicals News



Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News

Hot isotope container scare briefly shuts Budapest Airport terminal

BUDAPEST, HUNGARY: A terminal of Budapest Airport was briefly shut down due to an overheated container carrying an isotope, a spokesman for the Hungar ...

Read more
Indian oil tanker suffers explosion off Oman, three crew missing

DUBAI, UAE: An Indian shipping company said one of its crude oil tankers suffered an explosion off the coast of Oman and three of its sailors are miss ...

Read more
Monsanto ordered to pay $289 mn to man who got cancer from its chemical

MISSOURI, US: A California jury found Monsanto liable in a lawsuit filed by a man who alleged the company’s glyphosate-based weed-killers, inclu ...

Read more
PQG appoints Baker Hughes executive as next CEO

MALVERN, US: PQ Group Holdings Inc (PQG) has appointed Belgacem Chariag (55), as president and chief executive officer (CEO), effective immediately. ...

Read more
Total starts gas exports from second train of Yamal LNG project

PARIS, FRANCE: Total SA said that the first shipment of liquefied natural gas (LNG) from the second train of the Yamal LNG project in Northern Russia ...

Read more
Fluor to design, build Quellaveco copper project in Peru

IRVING, US: Fluor Corporation (FLR) has received the full notice to proceed for the engineering, procurement and construction management (EPCM) o ...

Read more uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X