[ad_1]
The world's biggest brewer, Anheuser-Busch InBev (AB InBev), says it's keeping a close eye on the burgeoning marketplace as some of its peers forge with marijuana companies.
"We are following following legalization in the United States – Canada and the US," spokesman for the group said, asking not to be named.
AB InBev, which is in the process of integrating SABMiller after buying the brewer for $ 100bn, said on Thursday its revenue grew 4.5% to $ 14.7bn in the September quarter thanks to slightly higher volumes.
But the stock plunged 10.59% on Thursday after it said it had to cut its interim dividend to pay off debt.
"Recent trends in Canada and some US states toward legalization of recreational marijuana are an important development – not just for the company, but the spokesperson told Business Day.
There remained "many unknowns" regarding the long-term commercial and societal effects of legalization.
"It is our hope that the public health and policy makers examine this issue carefully so that marijuana is properly regulated and where it is legal."
Major brewing giants are bringing together marijuana producers as countries legalize the plant. This is partly because of brewers are in some cases where cannabis has been legalized.
A 2017 study by Georgia State University found that alcohol sales had fallen 15% in US states where medicinal marijuana had been legalized.
In August, Constellation Brands, which makes Corona beers in the US, another $ 4bn investment in Canadian marijuana company Canopy Growth.
Diageo, which makes Guinness beers and Johnnie Walker whiskey, has reportedly been in talks with Canadian marijuana producers about a possible deal, and Molson Coors Brewing Company, through its own joint venture, plans to make cannabis drinks in Canada.
Canada legalized the use of marijuana earlier in October. Even some South African firms are testing the waters after the Constitutional Court decriminalizes the private use of cannabis.
Durban-based craft brewery Poison City Brewing, backed by investors RCL Foods CEO Miles Dally and Spar CEO Graham O'Connor, launched SA's first beer with cannabis in September.
The company sells a lager containing hemp – a variety of cannabis sativa plant largely devoid of mind-altering ingredients – in major liquor chains.
Coca-Cola soft-drinks plans to use CBD oils – the non-psychoactive ingredient in marijuana – in its beverages, according to a recent report by Bloomberg.
The company was reportedly in talks with Canadian marijuana producer Aurora Cannabis to develop the beverages.
[ad_2]
Source link
