A chilled CBD-infused Labatt Breweries beverage is coming to a market near you this December.
Fluent Beverage Company, the joint-partnership between the massive brewer Anheuser-Busch Inbev NV (EBR:ABI) and global cannabis pioneer Tilray Inc. (NASDAQ:TLRY), announced this week it will commercialize a non-alcoholic, CBD-infused beverage for Canadians likely hitting markets in December 2019.
Beer drinkers will know Anheuser-Busch by it’s Canadian subsidiary Labatt Breweries, which employs over 3,400 canucks and brews Budweiser, Kokanee, Stella Artois, Corona, Palm Bay and Mike’s Hard Lemonade, to name a few.
The joint venture was announced in December 2018 when High Park, a wholly-owned subsidiary of Tilray, and Labatt partnered to research a non-alcoholic drink containing weed cannabinoids tetrahydrocannabinol (THC) and cannabidiol (CBD).
Each company is investing up to $50 million in the partnership, according to Benzinga.
We're proud to share that our joint venture with @abinbev, through @HighParkCompany & @LabattBreweries, has evolved into Fluent Beverage Company. Fluent plans to launch non-alcohol CBD-infused beverages for the adult-use market in Canada later this year.https://t.co/mLEP0zBW6F
— Tilray (@tilray) October 10, 2019
Don’t hold your breath for THC-infused beverages
The companies need more time to research beverages containing THC and will only be providing CBD-drinks in December, Fluent’s chief executive Jorn Socquet told the Canadian Press.
THC, the intoxicating compound in cannabis, is unstable and degrades too quickly for a reasonable shelf life whereas CBD, the non-intoxicating compound, remains potent and stable for longer, said Socquet.
What the drink will actually look like, taste like, or smell like isn’t being revealed, but Socquet told the Canadian Press the non-alcoholic CBD-infused drink will likely be sparkling, slightly sweet and tea-like.
Beer and weed companies go together like peanut butter and jelly
The partnership between Labatt and Tilray comes after two similar beer and weed partnership announcements from August 2019.
Molson Coors Brewing Co. (TSX:TPX.B) and Quebec-based HEXO Corp. (NYSE:HEXO) are partnering to get cannabis-infused non-acloholic drinks to Canadians, and Constellation Brands Inc.(NYSE:STZ)(NYSE:STZ.B) bought a 38 per cent majority share of Canopy Growth Corp. (NYSE:CGC)(TSE:WEED) in August to invest in a similar venture.
Canadians wont be able to crack a cold CBD one till the government passes the second wave of cannabis legalization, set for October 17 which will legalize beverages, edibles, vapes and topicals. Even then consumers will have to wait 60 days while companies give a mandatory notice to Health Canada before drinks sales kick off.
If everything goes according to plan, expect the tsunami of CBD-drinks to hit one week before Christmas.