Molson Coors Expects To Launch Cannabis Beverage In 2019
Molson Coors Brewing Co (NYSE:TAP) shares are surging after the beverage maker reported a third-quarter earnings beat Wednesday.
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
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.
The Coca-Cola Co (NYSE: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.
Photo courtesy of Molson Coors.
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