B.C. cannabis company Tilray Inc. is partnering with the world's largest brewer, Anheuser-Busch InBev, to get CBD-infused drinks on Canadian store shelves in time for Christmas.
In a news release, the companies said their previously announced research partnership had enabled them to formulate beverages containing cannabidiol, the non-intoxicating compound also known as CBD, in a way that keeps the active ingredients stable and potent over the lifecycle of the product. That said, Anheuser-Busch InBev added that it needs more time to research beverages containing Tetrahydrocannabinol (THC), the cannabis compound that produces a high.
The beverages launch by the maker of Budweiser beer comes after the parent company of Labatt Breweries of Canada and Nanaimo-based Tilray announced a deal last December to research and develop non-alcoholic beverages containing CBD and THC. It's one of severalarrangements between alcohol giants and Canadian cannabis companies ahead of the next wave of adult-use legalization in Canada later this month.
Molson Coors Canada and HEXO Corp., a Quebec-based cannabis producer, announced a similar partnership last August. Alcohol producer Constellation Brands Inc. has invested $5 billion in Canopy Growth Corp.
Canada legalized cannabis for recreational use in October last year, starting with dried and fresh flower, seeds, plants and oils, but legislation governing next-generation products such as edibles, beverages, vapes and topicals come into force on October 17.
Due to the mandatory 60-day notice period companies must provide to Health Canada before selling these products, the earliest CBD beverages or THC-infused hand creams and other Cannabis 2.0 goods can legally go on sale in Canada is mid-December.
AB InBev's Labatt subsidiary and Tilray are preparing to launch their portfolio of CBD-infused products in Canada by Christmas, but the exact timing will depend on the various provincial and territorial bodies governing cannabis retail and distribution.
As for drinks that contain the active ingredient THC, AB InBev and Tilray say those could take more time to develop as THC can be unstable and degrade once placed in a liquid. The companies say they are continuing to research THC-infused beverages.
