The legalization of recreational marijuana in Canada will mean new opportunities for cannabis businesses — and that could include pot-infused beverages, Canopy Growth founder, Chairman and CEO Bruce Linton told CNBC on Wednesday.
Canopy Growth, a Canadian cannabis producer and the first purely marijuana-focused stock to list on a U.S. exchange, has garnered support from Constellation Brands, the alcohol giant behind Corona and Modelo, which took a 9.9 percent stake in Canopy’s business last fall.
And when recreational marijuana becomes fully legal in Canada this October, Canopy and Constellation may start working on what could be the next trend in weed: marijuana-infused beverages.
“We expect we’ll be able to make beverages and those beverages will be no calorie, they will cause you to feel upbeat,” Linton said in an interview with “Mad Money” host Jim Cramer, maintaining that there were “no guarantees” in this plan. “We’re talking about going into a bar and having a tweed and tonic.”
Just like Red Bull, the tweed and tonic could be a “category creator” in the world of weed, Linton told Cramer. He added that the prospective beverages would be zero-calorie and have up to 80 potential mixtures of different cannabinoids.
The beverages, which would serve to boost Constellation Brands’ exposure to the Canadian market, would also be targeted to two different audiences: those who want to relax after a busy day and those who want some energy before a night out, the CEO said.
“We are, in the second half of 2019, going to be able to introduce a bunch of new products … that will allow us to compete better with the illicit market, because part of the public policy isn’t just to make it legal, it’s to squeeze out the illegal,” Linton said.
“In Canada, what’s happening is the disruptor happens when a real product hits the market in a really structured way and people can make lawful choices,” he continued. “Do I want to fall asleep using Ambien or do I want to fall asleep through this one from the clinical trial from Canopy? Do I want to have a beverage that has alcohol or do I want to have a beverage with cannabis?”
Canopy Growth’s stock settled at $29.59 a share on Wednesday, up 1.82 percent.