Canadian cannabis Company Tilray Inc. (NASDAQ: TLRY) entered a USD 100 Million joint venture with beer brewer AB InBev (NYSE: BUD) to study cannabis-based beverages, the companies announced Wednesday.
The partnership is limited to Canada, and the companies will make decisions about commercializing the products in the future. Shares of Tilray jumped as much as 19% after hours. The joint venture, in which both companies will invest USD 50 Million each, will study non-alcoholic beverages containing THC, the psychoactive chemical compound in marijuana, as well as CBD, the non-active chemical.
Brewers have started dabbling in the cannabis space as interests grow and regulations ease. Constellation Brands Inc. (NYSE: STZ), which sells Corona and Modelo in the U.S., has invested USD 4 Billion in Canopy Growth (NYSE: CGC), Canada’s largest medical marijuana producer. Heineken N.V. (OTC: HEINY) Lagunitas brand introduced a cannabis-infused drink in California this summer.
AB InBev’s Canada-based subsidiary, Labatt Breweries, will be involved in the Tilray partnership.
“Labatt is committed to staying ahead of emerging consumer trends,” Labatt Breweries President Kyle Norrington said in a statement. “As consumers in Canada explore THC and CBD-infused products, our innovative drive is matched only by our commitment to the highest standards of product quality and responsible marketing.”
The deal is the latest that Tilray has inked. On Tuesday, Tilray announced a partnership with Novartis unit Sandoz to produced and distribute medical cannabis products. News of the deal sent Tilray shares soaring as much as 22%. They fell more than 6% on Wednesday.