Tilray shares surge after announcing $100 million deal with AB InBev to study cannabis-based drinks

By | December 19, 2018

Canadian cannabis company Tilray entered a $ 100 million joint venture with beer brewer AB InBev to study cannabis-based beverages, the companies announced Wednesday.

Constellation Brands, which sells Corona and Modelo in the U.S., has invested $ 4 billion in Canopy Growth, Canada’s largest medical marijuana producer. Heineken‘s Lagunitas brand introduced a cannabis-infused drink in California this summer.

AB InBev’s Canada-based subsidiary, Labatt Breweries, will be involved in the Tilray partnership.

“Labatt is committed to staying ahead of emerging consumer trends,” Labatt Breweries President Kyle Norrington said in a statement. “As consumers in Canada explore THC and CBD-infused products, our innovative drive is matched only by our commitment to the highest standards of product quality and responsible marketing.”

The deal is the latest Tilray has inked. On Tuesday, Tilray announced a partnership with Novartis unit Sandoz to produce and distribute medical cannabis products. News of the deal sent Tilray shares soaring as much as 22 percent. They fell more than 6 percent Wednesday.

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