Some of the biggest companies in the world are poised to profit from legalization. Meet the biggest non-weed companies investing in cannabis.
With legalization in full-swing in six states and new legislation in the works, investing in cannabis has officially gone mainstream. And today, some of the most established industries in the world are turning their attention toward cannabis as investors, product developers, and more.
These three major industries are investing in cannabis and could exert long-term influence on the market.
The Alcohol Industry Is Investing in Cannabis
According to a study looking at data from 90 alcohol stores between 2006 and 2015, medical marijuana legalization negatively affects alcohol sales.
The study found that alcohol sales drop close to 15% in states with legal medical marijuana.
Beer Companies and Distributors Turn Towards Weed
Prominent alcohol corporations were some of the first to start investing in cannabis. So far, several major brands have invested in legal weed:
Molson Coors Brewing Co. (NYSE: TAP) partnered with Hydropothecary, a weed producer, to create an infused beer. Molson Coors expects to launch its beverage in 2019. Constellation Brands Inc (NYSE: STZ), the beer company behind Corona and Modelo, invested $4 billion in major producer Canopy Growth Corp (NYSE: CGC) in 2018. Heineken (OTC: HEINY)-owned beer Lagunitas has already developed their own THC-infused beer called Hi-Fi Hops. Initially, Nevada legislation gave alcohol wholesalers a monopoly over distribution. However, this clause was disputed and rejected by the Nevada Supreme Court. Pharmaceutical Companies Look To CBD
Many of the world’s biggest pharmaceutical producers are investing in cannabis and hemp today.
Epidiolex, a cannabis medicine created by GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH), became the first FDA-approved CBD medicine in 2018. GW Pharmaceuticals isn’t the only pharmaceutical company investigating cannabis medicine. AbbVie Inc (NYSE: ABBV), another major