Beer and Pot? Molson-Coors Looking at Canadian Marijuana Companies

by | Jun 27, 2018 | NEWS

Molson Coors Brewing Company (NYSE: TAP) indicated interest in the marijuana industry back in their Q3 earnings conference call in November 2017. And just this week Bloomberg reported receiving intel that the brewery has been having conversations with several Canadian-based pot companies now that legalization has passed.

According to Bloomberg’s anonymous sources, Molson Coors has been engaged in discussions with as many as four Canadian marijuana companies, including Aurora Cannabis (TSE: ACB, USOTC: ACBFF) and Aphria, Inc. (TSE: APH, USOTC APHQF).

As a Colorado company, Molson Coors is no stranger to the legal marijuana market and its impact on alcohol sales. The company is said to be looking into alcoholic beverages infused with marijuana in an effort to improve sales.

As legalization grows, more and more consumers are switching from alcohol use to marijuana use. If the beer industry wants to compete, companies will have to start looking for ways to reach consumers.

CEO of Molson Coors, Mark Hunter, said in an investor presentation on June 6, “We have assembled a team in Canada to actively explore the risks and opportunities of entering the cannabis space in that market, where it will be federally legal by this fall.”

And after Corona Beer seller Constellation Brands Inc. (NYSE: STZ) bought a major stake in Canopy Growth (NYSE: CGC) last year, the precedent has been set. Canopy Growth is Canada’s largest marijuana company and now trades on the U.S. market.

Marijuana is now legal in thirty U.S. states and the District of Columbia, eight of those thirty allow for recreational use. And Canada just passed a broad legalization act which will take effect this October.

For now, Molson Coors isn’t announcing anything, but with the move toward legalization throughout the U.S. and Canada, breweries and other alcohol companies will have to embrace the change in consumer trends or risk being left behind.