Proactive Investors - Run By Investors For Investors

Tilray and Anheuser-Busch InBev enter partnership to research cannabis drinks

The two companies will each invest up to $50 million to conduct research on non-alcoholic beverages containing the cannabis derivatives THC and CBD
cash and cannabis
The investigative work will prepare the companies for the commercial launch of cannabis drinks

Anheuser-Busch InBev SA (NYSE:BUD), the world's largest brewer, is taking a gamble on the cannabis market by entering a research partnership with Tilray Inc (NASDAQ:TLRY), the cannabis producer.

The new partnership will be forged via Anheuser’s Canadian subsidiary Labatt Breweries while Tilray will get involved through its subsidiary High Park Company. The two companies will each invest up to $50 million to conduct research on non-alcoholic beverages containing THC (tetrahydrocannabinol) and CBD (cannabidiol), the cannabis derivatives.

The idea is that the investigative work will prepare the companies for the commercial launch of cannabis drinks.

READ: Tilray revenue soars 85% in 3Q as company takes aim at cannabis expansion

"We intend to develop a deeper understanding of non-alcohol beverages containing THC and CBD that will guide future decisions about potential commercial opportunities,” said Kyle Norrington, president of Labatt Breweries of Canada.

The venture will only be carried out in Canada. Anheuser Busch’s push into the cannabis sector follows its rival Constellation Brands Inc (NYSE:STZ), the maker of Corona Beer’s move last August to invest $4 billion in Canopy Growth (NYSE:CGC), another major Canadian cannabis company.

READ: Tilray adds Howard Dean and others to newly formed international advisory board

Investors applauded the tie-up, sending Tilray shares up 11.8% to $79.38 before Thursday’s opening bell while Anheuser Busch shares jumped 1.45% to $69.80.

Headquartered in Nanaimo, British Columbia, Tilray is one of a handful of cannabis companies to list in the US.

AB InBev, which is based in Leuven, Belgium, offers an array of beers including Stella Artois, Beck’s, Hoegaarden and Budweiser.

Contact Ellen Kelleher at [email protected]

Join Proactive’s Crypto, Blockchain and Cannabis Telegram group here
View full TLRY profile View Profile

Tilray Inc Timeline

Related Articles

cannabis
August 28 2018
Tidal Royalty provides capital to help grow licenced US cannabis firms in exchange for receiving a percentage of future top-line revenues.
cannabis tablet
February 28 2019
The company fills a niche in the medicinal cannabis market, as it continues to push forward its suite of precision oral dose products
medicinal cannabis concept
January 30 2019
Zelda has released its December quarterly report confirming multiple trials are on track.
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use