Tilray and AB InBev Invest $100 Million in Cannabis Beverage Research Project

cannabis beverage

Tilray Inc (NASDAQ: TLRY) has made another press release announcing a new expansion into the cannabis market. Today the company announced that it was partnering up with AB InBev, the worlds leading brewer, to research non-alcoholic beverages that would contain THC and CBD.

At the moment, the partnership is limited to Canada and future questions regarding commercialization and distribution of a potential product will be made in the future.

This research and development partnership bring the best of both worlds – Tilray’s cannabis expertise as well as AB InBev’s history of researching and creating beverages. Both firms will participate through their Canadian subsidiaries, with Tilray using its Canadian cannabis company High Park Company and AB InBev using Labatt Breweries, a leading brewery even within the Canadian market itself. Into total, both companies will be investing up to USD $50 million – or USD $100 million together – into this research venture.

We are delighted to be joining forces with a world-leading beverage company, AB InBev, to research how to create enjoyable cannabis beverage products,” said Tilray CEO Brendan Kennedy. “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.”

According to Business Insider, the combined market for marijuana-infused beverages alone could reach USD $600 million in the next four years. Some experts even go so far as to say that revenue from cannabis beverages could eclipse demand for general cannabis products, possibly consisting of up to 20 percent of the total market for marijuana edibles by 2022.

Cannabis-infused beverages can be divided into those that use CBD and those that use THC, with each expecting to become $240 million and $340 million in market size in the next few years. CBD (cannabidiol), is a compound that’s most associated with the therapeutic benefits of the plant, while THC (tetrahydrocannabinol) is what’s responsible for producing the “high” associating with consuming marijuana.

Kyle Norrington, President of AB InBev subsidiary Labatt Breweries, agreed that consumer demand for such beverages is a growing trend. “As consumers in Canada explore THC and CBD-infused products, our innovative drive is matched only by our commitment to the highest standards of product quality and responsible marketing. We intend to develop a deeper understanding of non-alcohol beverages containing THC and CBD that will guide future decisions about potential commercial opportunities,” he said. “We look forward to learning more about these beverages and this category in the months ahead.”

Tilray shares had a peculiar day, with prices plunged 7.2 percent in today’s trading session. However, they ended up surging in after hours trading, rising over 14.8 percent.

Tilray Inc Company Profile

Tilray is a global pioneer in the research, cultivation, production and distribution of medical cannabis and cannabinoids. Tilray was the first licensed producer of medical cannabis in the world to have its facility Good Manufacturing Practices (GMP) certified in accordance with European Medicine Agency (EMA) standards.

The company currently serves tens of thousands of patients, physicians, pharmacies, governments, hospitals, and researchers in eight countries spanning four continents through its affiliated entities in Australia and New Zealand (Tilray Australia New Zealand Pty Ltd), Canada (Tilray Canada Ltd), Germany (Tilray Deutschland GmbH), and Portugal (Tilray Portugal Unipessoal Lda). –Tilray

AB InBev Company Profile

AB InBev is a publicly traded company (Euronext:ABI) based in Leuven, Belgium, with secondary listings on the Mexico (MEXBOL:ANB) and South Africa (JSE:ANH) stock exchanges and with American Depositary Receipts on the New York Stock Exchange (NYSE:BUD). Our Dream is to bring people together for a better world. Beer, the original social network, has been bringing people together for thousands of years.

We are committed to building great brands that stand the test of time and to brewing the best beers using the finest natural ingredients.  Geographically diversified with a balanced exposure to developed and developing markets, we leverage the collective strengths of approximately 180,000 employees based in nearly 50 countries worldwide. – AB InBev