The CEO of Molson Coors says the market for cannabis-infused beverages could be worth billions. Here's why it's 'chasing down' that opportunity.
- Molson Coors is bullish on cannabis.
- The beverage giant's CEO said the market for cannabis in Canada alone could be as much as $10 billion.
- Cannabis-infused beverages could represent up to 30% of that market, according to the company.
- The beverage giant in August entered a joint venture with HEXO, a Quebec-based cannabis cultivator, to produce infused beverages for the Canadian market.
The CEO of Molson Coors is bullish on cannabis-infused beverages.
Speaking on Wednesday on its third quarter earnings call, CEO Mark Hunter said cannabis could be a $7 billion to $10 billion market in Canada alone.
Non-alcoholic cannabis-infused beverages could account for as much as $3 billion, or 30% of the total market.
"We decided as a business that we did not want to be a spectator as this new market opened up," Hunter said. "And we clearly wanted to be a participant."
A specialized growth-oriented team at Molson has been "chasing down an opportunity in cannabis," he added.
In August, Molson Coors entered into a joint venture with HEXO, a Quebec-based marijuana cultivator to produce cannabis-infused beverages for the Canadian market.
Canada legalized marijuana for all adults on October 17, though products like beverages, edibles, and vaporizers won't be available until the fall of 2019.
Hunter said that Molson Coors, through their joint venture, is "well-placed" to take a meaningful share of that market when it opens up.
"We're already in research around the portfolio and the beverages that will be offered," Hunter said. "We'll be in a ready-to-go position and one of the first on the playing field as that market opens up."
Molson Coors' foray into the cannabis space comes as beer sales have declined slightly across the industry.
See also:
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- The CEO of the biggest cannabis company in the US reveals what's next following a $682 million acquisition
- Hedge fund legend Leon Cooperman is investing in the marijuana industry - and it's another sign the sector is heating up