The Evolution Of Social Drinking: Beverage Companies Dip Their Toes Into Cannabis

Cannabis stocks have struggled in the market in recent years as the industry push to gain ground on the regulatory front hasn't progressed as quickly as investors had hoped. Yet beverage companies outside the cannabis industry have been adding or exploring cannabis partnerships and products.

Here are some beverage stock plays on the cannabis industry for investors to watch ahead of the Benzinga Cannabis Capital Conference April 11-12 in Miami Beach, Florida.

Cannabis Beverage Products & Partnerships: A number of alcoholic beverage makers have expanded into cannabis-infused beers and seltzers. Pabst Blue Ribbon launched its first THC-infused seltzer in California back in October 2020.

Corona maker Constellation Brands, Inc. STZ made a huge splash in the cannabis world in 2017 when it invested $200 million in Canadian producer Canopy Growth Corp CGC to develop a non-alcoholic cannabis-based beverage. A year later, Constellation invested another $4 billion in Canopy.

Related Link: The Intersection Of Cannabis & Consumer Products: These Non-Cannabis Companies Are Benefiting From The Growing Industry

In May 2023, Sam Adams maker Boston Beer Company Inc SAM launched a new line of cannabis-infused ice teas called TeaPot.

Cannabis Beverage Missteps: Unfortunately, not all cannabis beverage partnerships and collaborations have been fruitful for investors.

In 2018, Anheuser-Busch Inbev SA BUD announced a joint venture with Tilray Inc TLRY to commercialize CBD-infused non-alcoholic beverages in Canada, though that partnership was recently dissolved.

Canadian beermaker Molson Coors Beverage Co TAP spent more than two years on a cannabis-infused beverage collaboration with Hexo Corp HEXO before ending that collaboration in 2022, citing concerns over lack of regulatory clarity in the U.S.

The most infamous cannabis-infused beverage debacle is likely NewAge, Inc. NBEVQ, formerly New Age Beverages. New Age launched a line of CBD-spiked drinks back in 2018 and announced a number of exciting potential partnerships and deals in the years that followed. Unfortunately, the company filed for Chapter 11 bankruptcy protection in September 2022, and the U.S. Securities and Exchange Commission filed fraud charges against the company's former CEO just a month later.

Learn More: To learn more about cannabis industry partnerships and unconventional ways to invest in the cannabis industry, check out the Benzinga Cannabis Capital Conference at the Fontainebleau Miami Beach Hotel, April 11-12.

Several key conference participants are experts in the cannabis beverage market, including the following industry insiders:

• Kim Rael, CEO, Azuca
• Paul Weaver, head of cannabis, Boston Beer
• Evan Eneman, CEO, Sands Lane
• Luke Anderson, co-founder, Cann

Learn more about this and other upcoming Benzinga Cannabis events at this link.

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