The marijuana industry has put on a show for pot enthusiasts and investors this year. The highlight, as you can imagine, was the legalization of recreational cannabis on Oct. 17 in Canada. In a few years, after the industry has had time to expand its capacity and lay the foundation for its sales channels, $5 billion or more in added annual sales may be possible.
But for as impressive as the cannabis industry has been so far, all eyes are now turning to what 2019 might hold for pot stocks. While it’s impossible to tell what’ll happen with any certainty, investors will likely be waiting on the edge of their seats for one beverage giant to choose a cannabis partner.
Is 2019 the year this $88 billion beverage giant finds its weed partner?
For those who may not recall, August 2018 kicked off a monster rally in marijuana stocks. That was because two major beverage companies announced partnerships or investments with pot stocks in an effort to develop cannabis-infused beverages (and possibly other products).
It began on Aug. 1 when Molson Coors Brewing (NYSE:TAP) announced that it had formed a 57.5%-42.5% joint venture with Quebec-based grower HEXO. This was the first sizable partnership geared toward cannabis-infused beverage production. Mind you, Molson Coors and HEXO were looking quite a bit into the future when they made this deal. That’s because only dried cannabis and oils are permitted for sale at the moment. Alternative cannabis products such as vapes, edibles, concentrates, and infused beverages will need to be reviewed and approved for consumption by Parliament. This is expected to happen by next summer.
Two weeks later, on Aug. 15, Constellation Brands (NYSE:STZ) announced what would be the biggest deal in marijuana history with Canopy Growth (NYSE:CGC). By purchasing 104.5 million shares of Canopy’s common stock, Constellation, the maker of the Corona and Modelo beer brands, lifted its stake in the company to 37%. It also lined Canopy’s coffers with $4 billion in cash that it can use for acquisitions, capacity expansion, and improving its international sales channels. Constellation and Canopy are…
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