The parent company of Canada-based Labatt Breweries has joined hands with Tilray Inc. to create a wide range of non-alcoholic drinks, containing a few active ingredients that exist in cannabis.
Brendan Kennedy, the chief executive of Tilray, said that the leading producer of cannabis and the Anheuser-Busch’s Canadian arm InBev are going to jointly build a venture to bring together the best out of their businesses.
Both the partners in the deal have made a commitment to provide an equal sum of nearly $67.5 million to fund the joint project, which isn’t named so far. Also, there is no intimation as of now, about when the joint project is going to roll out drinks on the shelves of the Canadian market.
The existing federal law permits consumption of dried cannabis by grownups besides medical purposes also, but other types of marijuana aren’t allowed for the same, as of now.
Previously, a similar partnership was announced by a Quebec-based producer of cannabis HEXO Corp. and Molson Coors Canada, in August. The same month, Constellations Brands Inc. an alcohol producer, spent a sum of $5 billion in Canopy Growth Corp.
According to Kennedy, Tilray is aiming at collaborating with universal companies, including AB InBev, with a motive to get some help in prospering outside Canada, eventually. Canada is one of the first nations where adults are allowed to have cannabis products for recreational use.
Kennedy mentioned in an interview that they are happy to be worldwide pioneers and they wish to invent better together with other pioneers in the world, who are leading in their particular industries.
He added that Labatt and Tilray will consider an extensive range of ready-to-mix and ready-to-drink beverages in a diverse forms, for varying needs of different consumers.
Furthermore, Labatt president Kyle Norrington said that his company aims to better understand the non-alcohol drinks that contain CBD (cannabidiol) and THC (tetrahydrocannabinol), to be able to take well-guided decisions pertaining to the probable commercial breaks in the future.
Before the announcement, Tilray Inc. shares closed at US$71 on the Nasdaq market, US$5.50 low from the last close when they gained over $10 on Tuesday, after an extended co-operation deal with the a world renowned pharmaceutical company Sandoz AG of Novartis.
Tilray’s facility in Nanaimo, B.C., in Canada, is allowed to produce dried cannabis and cannabis extracts for medical use across the country. Its subsidiary in High Park, which will operate with Labatt, possesses a licensed facility in Enniskillen, Ont., which the company wants to use to expand its dried cannabis business in the adult market.