Marijuana News Today: Another Major Alcohol Company Enters the Marijuana Market

marijuana news today 2 August

Marijuana News Today

The marijuana news today marks another entrant into the growing pool of alcohol companies looking to invest in the marijuana space. This time, it’s Molson Coors Brewing Co (NYSE:TAP) that has joined the list, partnering with Hydropothecary Corp (OTCMKTS:HYYDF, TSE:HEXO) to bring marijuana-infused drinks to Canada come legalization.

The joint venture will see one of the largest alcohol producers on the planet looking to create non-alcoholic cannabis-infused beverages for consumers.

The details of the deal have Molson Coors retaining a controlling interest in the joint venture. The deal is expected to close by the end of September.

The two companies are going to structure the venture as a single, standalone company with an independent board of directors and management team.


“Canada is breaking new ground in the cannabis sector and, as one of the country’s leading beverage companies, Molson Coors Canada has a unique opportunity to participate in this exciting and rapidly expanding consumer segment,” Frederic Landtmeters, President and CEO of Molson Coors Canada said. (Source: “One of the world’s largest beer makers is about to start producing marijuana-infused drinks,” Business Insider, August 1, 2018.)

“While we remain a beer business at our core, we are excited to create a separate new venture with a trusted partner that will be a market leader in offering Canadian consumers new experiences with quality, reliable and consistent non-alcoholic, cannabis-infused beverages.”

This is, naturally, good news for Hydropothecary stock. We’ll have a piece detailing that company’s projections now that it has partnered with Molson Coors.

But for the industry as a whole, these partnerships are fantastic as it’s going to help reduce friction between two products that would otherwise find themselves in direct competition.

After all, there are only so many vices one can indulge in a single night. As such, there’s been a fear that alcohol and marijuana would be fierce competitors in the marketplace for people’s dollars.

These types of ventures are going to help mitigate that concern while adding a whole new dimension to the marijuana marketplace via these cannabis-infused beverages.

For people wary of trying marijuana, drinking a marijuana beverage that has that familiar feel of a beer may be the perfect gateway in order to get more consumers willing to at least give marijuana a shot.

For the alcohol companies, these ventures make perfect sense.

Data has come in that shows a decline in alcohol sales in places where marijuana is legalized. It only stands to reason that alcohol companies would want to get out ahead of that decline and combat it. In this case, Molson Coors has decided to combat that trend not by resisting the marijuana market but by joining it instead.

This follows along a similar path set out by Constellation Brands, Inc. (NYSE:STZ) when it partnered with Canopy Growth Corp (NYSE:CGC), again with both these companies’ sights set on marijuana-infused beverages.

Overall, its good news for both Hydropothecary stock and Molson Coors stock, but also for the marijuana industry more broadly.

Marijuana Stock Performances

The marijuana stock chart below shows the recent performances of Canopy Growth stock in black, Cronos Group Inc (NASDAQ:CRON) in blue, and Aurora Cannabis Inc. (OTCMKTS:ACBFF, TSE:ACB) in red.

Chart courtesy of

Canopy Growth Stock

Since the marijuana news today is celebrating the joining of an alcohol and marijuana stock, let’s start out our daily company review with one of the trailblazers in that regard: Canopy Growth.

CGC stock is down about two percent this week despite starting off strong, putting a damper on the hopes that August would bring about change for the marijuana industry that has been suffering of late.

While a few days of gains were not enough to spell the end of the correction, this week, at the very least, had gotten off to a promising start.

Not that a two-percent decline over three days is particularly egregious, but we’re experiencing a slow drip of value as we see a few percentage points fall from CGC stock and many other companies week after week.

When the correction will abate is unclear, but I would guess that by September, we’ll start seeing gains come back.

In the meantime, the share decline in CGC stock does present a good opportunity to reinvest before the marijuana boom that is all but certain to take place as Canadian marijuana legalization nears and we see hype rekindle.

As for now, I’d bide my time and wait until we near September. Then, I’d probably be able to invest in CGC stock for a bargain price. Considering I put a lot of value in Canopy Growth stock in the long term, that would be a good play in my eyes.

Aurora Cannabis Stock

One company that has had a measure of success this week, however, is Aurora Cannabis Inc.

The company had shot up by as much five percent this week, although the early morning decline today has all but wiped out those gains, putting the company about even for the week.

Aurora Cannabis stock was hoping to capitalize off of the closure of its acquisition of MedReleaf Corp. However, that acquisition has not materialized as stock gains just yet.

While Aurora Cannabis stock is well-situated to be among the biggest suppliers in the industry, its stock value has yet to see the benefits of its growth.

Still, the company is breaking almost exactly even on the week so far, which puts it ahead of many of its competitors that have dropped several percentage points, like our following stock.

Cronos Group Stock

Among the companies that have taken a hit this week is Cronos Group Inc.

While only down one percent, CRON stock joins the long list of companies still trying to tread water in this prolonged correction that has been in place since the Canadian marijuana legalization date was announced.

It’s worth noting that CRON stock emerged from that rollercoaster ride better than most other marijuana stocks, but it still has yet to see significant, sustained gains in 2018.

In fact, both CRON stock and Aurora Cannabis stock are down over 20% on the year, while CGC stock—despite its recent troubles—still finds itself with an overall gain of eight percent.

Analyst Take

The growing connection between the alcohol industry and the marijuana industry is only strengthening, as the marijuana news today demonstrates.

This is a good sign for both industries, neither of which wants to go to war with the other over how people spend on leisure substances.

Both Molson Coors and Hydropothecary stock look to benefit from this partnership. I’d wager that we’ll be seeing more and more of these deals in the future.