Molson Coors says that the Canadian cannabis-infused drinks market could be worth up to $3 billion, which is nearly half of what some projections say for the total cannabis market.
In late summer of 2018 Molson Coors, one of the biggest brewing companies in North America, took interest in the Canadian cannabis industry.
Quickly after that they made a joint venture called Truss, which is a joint effort of Molson Coors and HEXO.
This joint venture was made so that Molson Coors could profit from the Canadian cannabis market by selling cannabis-infused drinks.
Nobody had any idea, up until now, how big the infused-drinks market would be. Most people assumed that smoking and vaping will still be the two primary methods of consumption.
But, there is also a lot of cannabis users that are unable to smoke cannabis. For those users, infused drinks and edibles are the way to go.
Mark Hunter, president and CEO of Molson Coors, says that predicting the market for infused drinks and edibles is hard, but not impossible.
I think, if you take an average, then it suggests that this market may be somewhere between $7bn and $10bn in market value, with beverages somewhere between 20% and 30%. And that’s obviously non-alcoholic cannabis-infused beverages.
He followed that statement by saying that even if we were to assume that the value is on the lower end, that’s still a $1.5 billion valuation for the infused drinks and edibles market.
Hunter goes on to say that Truss is structured as a standalone company. It has its own board of directors and an independent management team.
Former Molson Coors executive, Brett Vye, was appointed as the CEO of Truss.
Molson Coors has a 57.5% controlling interest, while HEXO holds the remaining 42.5%.
The infused drinks and edibles market is expected to open in October 2019. Mark Hunter says that Truss will be one of the first companies ready to launch its products onto the newly formed market.