Molson Coors Brewing Co TAP shares are surging after the beverage maker reported a third-quarter earnings beat Wednesday.
What Happened
Molson Coors CEO Mark Hunter said he sees the Canadian cannabis drink market as a tremendous opportunity as the company looks to pioneer the category. The mega brewery said it will announce a cannabis beverage offering in early 2019.
Why It Matters
Several major breweries have shown a keen interest in cannabis-infused, non-alcoholic beverages, which could ultimately make up a big portion of revenue over time.
Cannabis beverages could make up between 20-30 percent of the Canadian cannabis market, Hunter said. Molson Coors values the Canadian cannabis market in the $7 billion-$10 billion range.
What's Next
The Coca-Cola Co KO was rumored to jump on the cannabis-infused drink trend, but CEO James Quincey dismissed these rumors Tuesday.
“We don’t have any plans at this stage to get into the space,” Quincey said on Coke's third-quarter earnings call, according to Fox Business. "So that’s kind of where we are.”
Despite the enthusiasm behind cannabis-infused beverages, Alan Brochstein, founder of New Cannabis Ventures, issued a word of warning for investors looking to play the space.
“The takeaway is that people should be very careful when they talk about cannabis beverages. It’s not like you just take some weed and mix it with some water and you have a drink,” he said.
Related Links:
The '420 Investor' Talks Canada's Legalization, Calls Cannabis Stocks A Crowded Trade Right Now
Cannabis Stocks Largely Down On Canada's First Day Of Legal Leaf
Photo courtesy of Molson Coors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Click on the image for more info.
Cannabis rescheduling seems to be right around the corner
Want to understand what this means for the future of the industry?
Hear directly for top executives, investors and policymakers at the Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9.
Get your tickets now before prices surge by following this link.