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Budweiser-parent mulls pot-based drinks, inks JV with Tilray

The world’s largest brewery and the parent company of Budweiser, AB InBev (BUD), has given potheads more reasons to cheer ahead of Christmas. The company on Wednesday announced a partnership with Canada-based marijuana firm Tilray (TLRY) to study weed-based drinks. Both the companies will put in $50 million each into the joint venture to study […]

December 20, 2018 2 min read
Market News

The world’s largest brewery and the parent company of Budweiser, AB InBev (BUD), has given potheads more reasons to cheer ahead of Christmas. The company on Wednesday announced a partnership with Canada-based marijuana firm Tilray (TLRY) to study weed-based drinks. Both the companies will put in $50 million each into the joint venture to study […]

· December 20, 2018

The world’s largest brewery and the parent company of Budweiser, AB InBev (BUD), has given potheads more reasons to cheer ahead of Christmas. The company on Wednesday announced a partnership with Canada-based marijuana firm Tilray (TLRY) to study weed-based drinks.

Both the companies will put in $50 million each into the joint venture to study the development of non-alcoholic drinks infused with cannabis components THC and CBD. For the time being at least, the partnership will be restricted to Canada, where recreational use of cannabis was legalized in October.

Tilray and AB InBev stocks were trading up 6.3% and 0.3% at 9:40 AM ET on Thursday.

Tilray CEO Brendan Kennedy said, “Tilray and AB InBev share a commitment to responsible product development and marketing, and we look forward to beginning our work on this important partnership as Tilray continues to pioneer the development of a professional, transparent, and well-regulated cannabis industry.”

This is Tilray’s second partnership in a week. On Tuesday, the cannabis giant inked a deal with German company Sandoz, a subsidiary of Novartis (NVS) to make and distribute medical products based on marijuana. That announcement had sent Tilray stock up 22% that day.

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Tilray shares have more-than-quadrupled in value since its initial public offering in July.

In a similar deal, Constellation Brands (STZ), which makes Corona beer, had in August announced that it was investing an additional $4 billion in Canada’s biggest medical marijuana firm Canopy Growth (CGC), taking its total holding in the company from 10% to almost 38%.

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