Tilray partners with AB InBev
On December 19, Tilray (TLRY) announced a “research partnership” with one of the largest alcoholic beverage companies—AB InBev. The joint partnership would entail an investment of $100 million or $50 million from each company to advance research in non-alcoholic beverages specifically for the Canadian market. The beverage product research would target both THC (tetrahydrocannabinol) and CBD (cannabidiol) infused drinks. The research might focus on both recreational drinks.
Tilray’s CEO, Brendan Kennedy, said, “We are delighted to be joining forces with a world-leading beverage company, AB InBev, to research how to create enjoyable cannabis beverage products.”
About the partnership
The partnership is strictly research oriented. The companies left the decision to commercialize the products out of the research. The research will be organized by Labatt Breweries in Canada and High Park Company—subsidiaries of AB InBev and Tilray, respectively.
Following the news release, Tilray stock rose nearly 15% in the after-market session, while the cannabis sector (HMMJ) remained subdued. Canopy Growth (WEED) declined 4.3%, while Aphria (APHA) (APHQF) declined nearly 7.7% during the day.
To learn more, read Tilray: Analysts’ Target Price and Ratings in December, Top Ten Developments to Watch in the Cannabis Sector in 2019, and Canadian Cannabis Companies Set Sights on US Hemp Market.