Molson Coors cannabis deal: The Canadian Senate has passed Bill C-45, and recreational cannabis use in Canada will be legalized in October. Now what, though? How are the months leading up to the legalization going to play out?
Well, one thing is for sure: we’re going to see a lot of companies jump on the cannabis bandwagon. The latest to do so, according to Bloomberg, is Molson Coors, a Denver, Colorado-based beer giant.
The Molson Coors Cannabis Deal: The Basics
Late last week, Bloomberg reported that Molson Coors is considering moving into the Canadian cannabis industry.
The potential pivot into cannabis is not brand new information, though. Earlier this month, Mark Hunter, CEO of Molson Coors, disclosed at a presentation that Molson Coors has “assembled a team in Canada.” Why? So that the Colorado company can “explore the risks and opportunities” of moving into the Canadian cannabis industry.
However, the Bloomberg report gave some specific details that Mr. Hunter failed to provide at the investor presentation.
Molson Coors Cannabis Deal: The Report
In the Bloomberg report, it was disclosed that Molson Coors has been in talks with numerous Canadian-based cannabis companies. During these talks, Molson Coors discussed both investing and creating cannabis-infused beverages.
Over the past six months, Bloomberg reported that Molson Coors has talked with the following companies: Aurora Cannabis (TSX:ACB) and Aphria Inc (TSX:APH).
Will Cannabis-Infused Beverages Have Restrictions?
If Molson Coors does move into the Canadian cannabis industry and produces cannabis-infused beverages, know that there will be some restrictions.
For instance, as part of Bill C-45, there can be no co-locations of cannabis with alcohol. Therefore, these beverages will never be sold in liquor stores. However, if Molson Coors makes some sort of zero alcohol soda, then those will be sold in a Canadian dispensary.
The Molson Coors Stock (NYSE:TAP)
The news is trending, so that means at least some people are optimistic about the pivot. However, the Molson Coors stock is telling a different story.
On the NYSE, at 1:43 p.m. EDT, according to Google Finance, Molson Coors was down 0.54%.
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