Page 119 - Bloomberg Businessweek - November 19, 2018
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Bloomberg Businessweek The Year Ahead 2019 Consumer
Cannabis $200 million. Molson Coors Brewing Co. has
started a joint venture with Gatineau, Que.-based
Hexo Corp. to sell nonalcoholic cannabis drinks.
Coca-Cola Co. has said it’s interested in drinks
infused with CBD—the non psychoactive ingredi-
▷ Businesses are angling to offer ent in marijuana that can ease pain but doesn’t
more marijuana ingredients in get you high—though it doesn’t have immediate
beverages plans to enter the market.
Heineken NV’s California-based craft beer
subsidiary, Lagunitas, recently began sell- $3�8b
Brian Athaide was at his desk in Grimsby, Ont., ing a sparkling water infused with cannabis in
when news broke in October 2017 that Con- California, while Australian startup Cannabis Co.
stellation Brands Inc., maker of Corona is marketing Down Under a hemp gin flavored
beer, was investing in Canopy Growth with weed terpenes. The investments are
Corp. in a deal valuing the cannabis part of an effort to tap into what Roth
producer at about $2 billion. Athaide, Capital Partners LLC estimates could
who was chief financial officer of wine eventually be a $150 billion-a-year legal
and beer company Andrew Peller Ltd., weed market.
realized he was in the wrong business. The tieups promise to deliver a vari- ● Investment of
“My phone started ringing off the ety of beverages such as intoxicating Corona brewer
Constellation Brands
hook from different cannabis compa- cocktails, rehabilitative sports drinks, in marijuana producer
nies wanting to do similar deals,” he and sleep-inducing teas. Before people Canopy Growth
recalls. “Do I want to be in a declin- trade a Bud Light for a bud, however,
ing industry? Or do I want to be producers will have to develop better
where the growth is?” recipes. Some offerings are seriously
Athaide chose growth. Now he’s lacking, according to Canopy CEO 39
chief executive officer of Green Bruce Linton. “They’re gross,” he
Organic Dutchman Holdings Ltd., a says, with high quantities of THC,
Mississauga, Ont.-based company the main psychoactive compound
that plans to make pot drinks. in cannabis, and “often very
Although Green Organic’s strong masking flavors, so you
products have yet to hit store don’t know they taste gross.”
shelves, its shares are already Another complication:
worth more than C$1 billion Different strains of weed
($757 million). The company’s produce varying reactions
success is a result of the tra- even in seasoned users. Pot
ditional beverage industry’s takes longer than alcohol to
surging interest in cannabis digest and take effect. While
drinks as more jurisdictions waiting, a cannabis drinker
move toward legalizing pot. might have another round.
The coming year will see By the time both kick in,
more of this convergence. she may be more intoxicated
While Canada legalized many than intended. “You know
forms of the drug in October, how you’ll feel after a second
edibles (including drinks) beer,” says Peter McDonough,
go on sale over the next who used to head marketing
11 months. The prospect, and innovation for distiller
along with a loosening of Diageo Plc in North America
restrictions on marijuana use and now sits on the board of
in some U.S. states, the U.K., Trait Biosciences Inc. “The
and elsewhere, has lured challenge cannabis com-
some of the biggest names panies have is they need to
in drinks. Constellation has create a more predictable
increased its investment in experience.” �William
Canopy to $3.8 billion from Mathis and Thomas Buckley
