uploads///Cannabis Stocks versus ETF

AB InBev’s Comments: Gauging the Impact on Marijuana Sales

By

Jan. 25 2019, Updated 5:25 p.m. ET

The comment

Earlier this week, AB InBev (BUD) CEO Carlos Brito indicated in an interview with CNBC that marijuana might not have been behind the decline in beer sales. As promised, we’re providing our analysis of the impact on the marijuana industry and its partnership with beverage companies.

Article continues below advertisement

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. But will these products be a good substitute for beer?

Marijuana substituting sales

In the interview, Brito further stated that he doesn’t have enough data linking the decline in beer sales to the legalization of marijuana. If it is indeed marijuana causing the decline, then it would be good news for the industry since it shows that users are shifting to the marijuana side, indicating that marijuana can be a substitute to beer. So, if a link were proven, it would be positive for companies (HMMJ) like Canopy Growth (WEED), Cronos Group (CRON), and HEXO (HEXO).

However, it’s not good news for these stocks if the data proves otherwise. Read on to the next part of this series to learn more.

Advertisement

More From Market Realist

  • BioNano Genomics Saphyr system
    Company & Industry Overviews
    BioNano Genomics (BNGO) Stock Looks Like a Buy, Solid Opportunity
  • Delta aircraft
    Company & Industry Overviews
    Delta Air Lines Updates Mandatory Vaccine Policy, Explained
  • AMC advertisement in walkway
    Company & Industry Overviews
    Why It's Time for Most Investors to Sell AMC Entertainment Stock
  • 100 Thieves founder Matthew Haag
    Company & Industry Overviews
    Why Growing Esports Company 100 Thieves Isn't Publicly Traded
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.