The Molson Coors Brewing Company is joining the cannabis game. In a joint venture with leading cannabis producer, The Hydropothecary Corporation, the two companies will develop non-alcoholic drinks infused with cannabis.
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 57.7% stake in the new company and Hydropothecary will hold the balance.
With recreational marijuana set to become legal on October 17, edible products infused with pot will remain illegal until specific government regulations are rolled out by 2019.
The new company will combine the proven experience of Canada’s leading beers with a new innovator in the fast-growing cannabis market.
“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,” says 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.”
The deal will be finalized by the end of September and is subject to the final approval of the Toronto Stock Exchange.