Drinks and drugs are hot. And we do not mean only in the hit by Lil Kleine and Ronnie Flex. More and more multinationals are sticking their necks out and are investing massively in the legal weed industry.
With the legalization of recreational cannabis in Canada in October 2018, the demand for weed increased dramatically. The Canadian Canopy Growth benefited from this new growth market, but the major beverage and tobacco manufacturers were also on the move. The American company Constellation Brands invested no less than 4 billion dollars in Canopy. Altria, producer of cigarette brands such as Marlboro and Lucky Strike, also invested heavily in the legal cannabis sector last December. The American tobacco company put 1,8 billion dollars into the Canadian cannabis company Cronos.
Cannabis investors
AB inBev recently invested 50 million in cannabis producer Tilray. And what about Lagunitas, which successfully launched the non-alcoholic cannabis drink Hi-Fi Hops in California. Coca Cola is also planning to produce cannabis-based drinks, and there are still countless investors. Rapper and music producer Snoop Dogg, for example, makes smart use of the new developments in the cannabis business. Through his investment company Casa Verde Capital, he invested in the Dutchie cannabis delivery service and in the pharmaceutical company Oxford Cannabinoid Technologies.
Beverage, tobacco & weed
With tobacco smoking being strongly discouraged by governments in many western countries and declining, many tobacco companies are looking for alternative products. The legal cannabis sector appears to be a good growth market to expand the existing range. At the same time, the legalization of recreational cannabis continues to increase, which offers new opportunities. Looking at the alcohol industry, there has been a decline in alcohol consumption in US states where cannabis has been legalized. However, the legalization of marijuana does offer an opportunity for many drink giants to get their share. Because why not develop a THC-containing drink? After non-alcoholic beer, cannabis beer may well be the next trend. According to research by investment bank Cowen, the cannabis industry may be overshadowing the soft drink industry as early as 2030.
Bubble or golden business
And then there is of course the medical sector, where companies such as Bedrocan hold sway. The success stories of patients with chronic medical complaints – who use medicinal cannabis and CBD products – are numerous. In short, the emergence of a completely new legal multi-billion dollar industry worldwide brings with it many new start-ups, acquisitions and collaborations. Financially, we see an unstable stock market that fluctuates a lot. Especially now that some countries and states are struggling with a chronic cannabis shortage. On the one hand, billions are made, but there are also many start-ups and investors who estimate the market too optimistically and see their profits disappear like snow in the sun.
