Cannabis Beer Market: Constellation Ups Investment as Province Builds Cannabis Brewery

Cannabis Beer Market

The cannabis beer market is expected to be huge and there is much anticipation ahead of Canada’s legalization of recreational marijuana which will take effect in October.

Today’s news adds to the brewing hype.

The Cannabis Beer Market: Province Brands

Let’s start with Province Brands who announced it has invested an eye-watering $38 million USD into what will be the world’s first cannabis brewery. Yes, this is a brewery created specifically for creating Province’s new line of beer which is brewed using the entirety of the marijuana plant. In time the brand will be creating varients too inclusive of pilsners, IPA’s and stouts.

The Toronto-based company clearly likes to be a company of first’s, as its beer is the first of its kind too; it is made out of the stems and stalks of the plant which otherwise are paid for by farmers to be disposed of as waste.
 
Dooma Wendschuh, company co-founder, has said that this makes the cannabis beer essentially free to produce; Province gets given the unused parts of the plant which happen to be the beers main ingredient, by the farmers who then don’t have to pay for disposal.

However, Cannabis edibles will not be legalized until another year’s time as they require stricter and more detailed regulation, so Province Brands is still in preparation stages.

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It’s more than a good start though, with a $38 million brewery now behind it.

>>Molson Coors Enters Into Deal with HEXO to Create Cannabis Infused Drinks

Constellation Brands

In other cannabis beer related news, Alcoholic drink giant Constellation Brands (NYSE:STZ) announced today that it would be upping its stake in Canopy Growth Corp. Constellation Brands is the maker of the global favorite Corona beer.

The company is upping its investment into the cannabis industry, with an additional $4 billion stake in Canopy Growth Corp. (TSE:WEED)

Constellation began its relationship with Canopy Growth in October with a 9.9% stake in the Canadian cannabis company. The deal allowed the option of future investing which the company had decided to take advantage of and now its stake is 38%.

Its cannabis beer will not go on sale in the United States until legalization is more definitive across the country, but it is expecting to begin selling in Canada in the fall.

And Canopy Growth stock has responded well to the news too, with a massive 26.97% jump. 

Cannabis Beer Market

Featured Image: Deposit Images/Nitrub