In the latest instance of breweries sniffing out the weed business, Anheuser-Busch InBev announced Wednesday it will partner with Tilray, a Canadian cannabis producer, in a $100 million joint venture. A-B InBev’s Labatt Breweries of Canada will work with Tilary subsidiary High Park Co.
The partnership will focus on research into the cannabis-infused, non-alcoholic drinks market in Canada, Reuters reports. According to the announcement, each company plans to invest up to $50 million to research cannabidiol, or CBD, a compound found in cannabis purported to be beneficial to mood and health without causing a “high.”
Canada became the first major country to legalize recreational cannabis use in October. By next October, the country is expected to approve cannabis-based beverages, edibles, and other products.
Other major beverage alcohol producers investing in the trend include Constellation Brands, which added $4 billion to an initial $200 million investment in Canopy Growth in August; and Molson Coors, which formed a joint venture with Hexo Corp in August.