Moosehead Breweries Ltd, one of the largest breweries in Canada, has announced that it plans to form a joint venture with Sproutly Canada, Inc. in order to make cannabis-infused drinks. The drinks will be introduced on the Canadian market by the end of this year.
Andrew Oland, the CEO of Moosehead Breweries Ltd, said that the company wants to enter the cannabis beverages space as soon as the federal government in Canada releases rules to regulate cannabis edibles in the country.
As a leader in the beer industry, Moosehead is convinced that the company is well placed to be a major player in the cannabis drinks sector.
Once the joint venture is finalized, Mathew Oland will be its head. Mathew Oland is a former Vice President of Moosehead Breweries and in that role, he superintended the supply chain infrastructure of the brewery. While at the joint venture, Mathew Oland will oversee Research and Development (R&D), procurement and distribution as well as the operations of the new entity. A name for the joint venture hasn’t yet been agreed upon. The financial aspects of the joint venture are also yet to be finalized.
Keith Dolo, the CEO of Sproutly Canada, revealed that the joint venture will be given exclusive rights to use Sproutly Canada’s technology for five years, which can be extended for two more years.
Dolo added that working with Moosehead will expedite the process of getting the drinks developed to the market in a sector that is expected to be highly competitive.
To get an idea about how tough the competition is likely to get, consider the fact that Canopy Growth and Constellation Brands are finalizing a bottling line for cannabis beverages. Another cannabis company, Hexo Corp. also teamed up with Molson Coors Brewing Company to make marijuana-infused drinks. Other small players have also expressed their interest in entering the cannabis drinks market.
However, the drinks made using Sproutly Canada’s technology may have an edge in the industry since this technology shortens the time within which a person can feel the effect of the drink he or she has consumed.
Just for comparison purposes, the cannabis drinks available in California take more than an hour to kick in and the effects wear off between 4-8 hours later. In contrast, Sproutly’s technology results in a cannabis drink whose effects are felt within five minutes and those effects wear off in less than two hours. No prizes for guessing which product stands a higher chance of being a hit in the market!
Supreme Cannabis Company Inc. (TSX.V: FIRE) (OTCQX: SPRWF) and Sugarmade Inc. (OTCQB: SGMD) congratulate Sproutly Canada, Inc. and Moosehead Breweries Ltd upon their desire to form a joint venture so that Canadians can have an increased number of options to select from when they want a cannabis beverage.
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