Beer maker Molson Coors (TSX: TPX.B) has partnered with a Quebec-based cannabis company called Hexo to develop non-alcoholic, cannabis-infused drinks in Canada.
Molson Coors and Hexo announced Wednesday that they are forming a standalone company with its own board of directors and independent management. Molson Coors will control 57.5% of the currently unnamed venture, the company said in a news release. Hexo will own the remaining 42.5% of the new concern.
Hexo, a Hydropothecary medical marijuana company, said will continue to use the Hydropothecary moniker for its medical products, anything aimed to the recreational market will carry the new brand.
Industry experts have pointed to the stigma of smoking as one reason companies are developing smoke-free ways to consume cannabis once its recreational use is legal in Canada, as of October 17 this year.
The regulatory framework around edible and drinkable cannabis products likely won't be in place until 2019, said Molson Coors. Hexo was founded in 2013 in east Gatineau and is in the midst of an expansion that would eventually see it produce up to 108,000 kilograms of dried cannabis per year. It is poised to provide Quebec with 20,000 kilograms of cannabis products, including plants, sprays and powders, in the first year of legal sales.
The deal between Hexo and Molson Coors is expected to be finalized by the end of September this year.
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