Tilray, Inc. (NASDAQ:TLRY) rose Thursday on the back of the announcement it's going to partner with Anheuser Busch Inbev NV (NYSE: BUD) Tilray will participate in the partnership through its High Park Company subsidiary, while Anheuser Busch Inbev's involvement will be through its subsidiary Labatt Breweries of Canada. Both companies will research non-alcohol beverages that contain tetrahydrocannabinol (THC) and cannabidiol (CBD).
The research partnership combines AB InBev’s deep experience in beverages with Tilray’s expertise in cannabis products.
AB InBev’s participation will be through its subsidiary Labatt Breweries of Canada, one of the country’s founding businesses and its leading brewery, and Tilray’s participation will be through its Canadian adult-use cannabis subsidiary High Park Company, which develops, sells, and distributes a portfolio of socially-responsible cannabis brands and products in Canada. Each company intends to invest up to $50 million U.S., for a total of up to $100 million U.S.
Said Tilray CEO Brendan Kennedy, "We are delighted to be joining forces with a world-leading beverage company, AB InBev, to research how to create enjoyable cannabis beverage products.
"Tilray and AB InBev share a commitment to responsible product development and marketing, and we look forward to beginning our work on this important partnership as Tilray continues to pioneer the development of a professional, transparent, and well-regulated cannabis industry."
With strong track records of responsible product development and marketing in their respective industries, AB InBev and Tilray believe that the legal market for THC and CBD beverages will only thrive if the industry embraces appropriate regulation of adult-use cannabis, including responsible production, marketing, sale and consumption.
Tilray shares vaulted $3.71, or 5.3%, to $74.79, while BUD shares nicked up three cents to $68.87
