It is an exciting time to be in cannabis. The air is still sticky with excitement from Canada’s unprecedented legalization last week. New York State is taking significant steps towards hemp and marijuana legalization. And famous beer brewers Molson Coors is chatting with pot stocks about creating cannabis-infused beers.
The recreational market is anticipated to erupt in North America come October, and the beer and alcohol industry is looking to take the biggest hit. Molson Coors is not the first brewing company to take a closer look at cannabis. After their Canadians sales dropped more than two percent last year, the brewer is looking to partner with a cannabis producer.
Right now, Molson Coors dominates a third of Canada’s beer market. They are the Number Two beer retailer in North America, and that alone will give any pot stock on this list a healthy marketing reach. Which pot stock deserves it most? These are the top four pot stocks that we think should partner with Molson Coors.
Out of the four cannabis companies Molson is talking to, Aphria Inc. (TSX.APH) is one of the stronger pot stocks capable of taking on infused beverages. Riding on the coattails of Canadian legalization, Aphria is poised to bring new products to a budding base of recreational consumers. They recently invested $55 million in a brand new extraction facility that will be equipped with C02, butane, and ethanol extraction capabilities.
On top of the new Extraction Center of Excellence, Aphria was also working on a few new product launches. Solei is the pot stock’s first recreational brand. And the next new brand was meant to be announced at Toronto’s List & Co cannabis expo this year, but Aphria stalled. The company is waiting for more clarity regarding new cannabis laws. This decision was influenced by Health Canada’s recent request to have Aphria remove Solei’s promotional content from their website because it went against the country’s rules regarding cannabis advertisements.
Molson Coors presents a lucrative opportunity for Aphria while they wait for the legal system to iron out all the kinks. Aphria is well-aware of the growing trends for concentrates and oils, and they seem to be preparing themselves for a boom in the market. Cannabis beer could be another significant step in the right direction for this pot stock.
After acquiring MedReleaf in one the most headline-worthy mergers in cannabis history, Aurora Cannabis (TSX:ACB) (OTCQB:ACBFF) is now projected to produce over 570,000 kilograms of cannabis per year. Their new greenhouse project known as Aurora Sun operates on over one million square feet.
The Motley Fool points out that Aurora is keeping close to the medical side of the industry. Medical marijuana presents less risk from an investor’s perspective. By focusing on the production of concentrates and oils, Aurora is protecting themselves from the eventual price fallout that will come from the commoditization of recreational pot. But their concentrate production may also make them more attractive to a brewing company like Molson Coors.
The brewing industry seems to bet on cannabis concentrates on saving slipping sales. As a pot stock, Aurora is appealing because they have the size and capacity to meet recreational demands. Aurora already consolidated companies like MedReleaf and CanniMed Therapeutics Inc. It may be too soon to tell, but both parties could benefit from a similar agreement with Molson Coors.
Organigram Holdings (TSXV:OGI) (OTCQB:OGRMF) is another pot stock focused on medical marijuana. The company recently entered into a non-binding term agreement with Eviana Health Corporation. The agreement guarantees Organigram a significant share of Eviana’s CBD production over a period of five years.
“The proven cultivation and processing costing model that Eviana has developed will allow us to bring a range of innovative products to the global CBD marketplace,” Greg Engel, CEO of Organigram, explained in a statement.
Without a direct statement, PotNetwork cannot state for sure whether a CBD-infused beer is on that prospective list of innovative new products. It is fair to speculate, though, that there is no reason beer should not be considered. Organigram may be medically focused, but they are not ignoring the recreational market completely.
The company unveiled its recreational marijuana brands in May, bringing high-quality dried flower and pre-rolls to adult smokers. But these brands do not offer any cannabis oil or concentrate products. Molson Coors could be a viable enterprise for introducing a recreational product that could use CBD as well as THC. After Ogranigram’s cannabis oil sales jumped 32 percent last quarter, infused beer is something from which this pot stock could seriously benefit.
CannTrust Holdings (CSE:TRST) announced Monday that they are more than ready to take on the new recreational market in Canada. Their standardization of cannabis, including their precise labeling system, make them an attractive pot stock in the recreational arena. Standardization gives this company an appeal to new adult users and those who have not smoked pot for decades.
In time for legalization, CannTrust released three new brands for the recreational space. Their labeling systems provides three distinct brands for three distinct marijuana users, including the brand Liiv for experienced users. Out of the three, Liiv is the only recreational brand of theirs that offers a cannabis concentrate capsule along with the definitive dried flower and pre-rolled joints.
CannTrust astutely recognizes the need for cannabis oil in the recreational market. Their oil sales jumped a stellar 297 percent over last year. Teaming up with a brewing company like Molson Coors could put CannTrust’s high-quality cannabis oils into the drinks of more consumers. Since CannTrust is a smaller player, producing 113,000 kilograms of weed annually on one single grow site, a big name like Molson could ultimately boost their sales come October. This pot stock will need the reach if they want to compete with capacity the likes of Aphria and Aurora.