Molson Coors Is Making Non-Alcoholic Cannabis Beer So I Guess I’ll Start Drinking Again
Source – Molson Coors Brewing Co. TAP.A 1.49% is turning to cannabis drinks in search of growth as the No. 2 U.S. brewer reported another quarter of weak beer sales.
The company said it is forming a joint venture with The Hydropothecary Corp.HEXO +14.02% , a Canadian cannabis producer, to develop non-alcoholic, cannabis-infused beverages for the Canadian market.
The brewer’s pivot follows similar moves by Corona brewer Constellation Brands, which last year invested in Canadian cannabis company Canopy Growth with plans to develop beverages, and HeinekenHEINY 0.07% NV, whose Lagunitas brand this week launched a cannabis-infused sparkling water in California.
The decline of American light lagers like Miller Light and Coors Light continues to hurt Molson Coors. Its global volumes fell 2.4% in the second quarter, driven by declines in the U.S. and Canada. In the U.S., beer volume dropped 4.8% and revenue decreased 3.1%.
Recreational marijuana use in Canada will be legal in mid-October, and edible and drinkable cannabis products are expected to be legalized there by 2019. Independent research firm Euromonitor International estimates that legal marijuana sales in 2018 will total US$7.5 billion in Canada and $10.2 billion in the U.S.
In the joint venture, Molson will have a 57.5% interest in a standalone startup company with its own board of directors. The Hydropothecary, also known as Hexo, will have the remaining ownership interest.
Frederic Landtmeters, CEO of Molson Coors Canada, said in a news release that the cannabis venture is consistent with its growth strategy of creating “high-quality products that meet [consumers’] evolving drinking preferences.”
This interests me for a number of reasons.
- There is a shit pile of people who’ve given up booze for Cannabis for health and addiction reasons. Overconsumption of alcohol on a regular basis has net negative benefits. Overconsumption of weed has none depending on your usage rate and tolerance.
- Alcohol-related deaths last year alone in North America? 100k. That number grows to 2.5 million per year with long-term alcohol-related illness.
- Weed related deaths? ZERO. Ever.
- There are no known medical uses for alcohol.
- There are over 1000 known medical uses for Cannabis…and growing.
- One beer has 215 calories.
- Beer-infused weed depending on the contents, 40-90 calories. if you put a drink infuser (sold at most great dispensaries), ZERO Calories.
Imagine feeling like you’ve had three beers after having a weed beer with a third of the calories, none of the gluten and no hangover. Ever. Beer companies like Molson Coors and Corona aren’t trying to protect their market. Stepping into this untapped market with both feet and might be the best news of all. It means they get it and know if they want to compete with this feel-good green wave, they have to embrace it and make it readily available to people to combat the loss in market share. When huge companies like Molson Coors get involved, it speeds up the process for the consumer and cuts through red tape giving hope for a day you can get a six pack of weed beer and spend your afternoon relaxing with friends instead of trying to kick the shit out of them before they leave.
Dean Blundell
Dean Blundell is a Canadian radio personality. Best known as a longtime morning host on CFNY-FM (The Edge) in Toronto, Ontario. In 2015 he was named the new morning host on sports radio station CJCL (Sportsnet 590 The Fan). Dean started his career in radio in 2001 and for nearly 20 years been entertaining the radio audience. Dean’s newest venture is the launch of his site and podcast which is gaining tremendous momentum across North America.
