Just like the cannabis edibles market, the cannabis beverages market is also expected to explode in the next four years and today I am going to reveal five cannabis beverages stocks that are ready to cash in.
According to a new report from leading cannabis industry research firm Zion Market Research, the global cannabis beverages market was valued at $1.6 billion in 2018. Zion predicts the market will grow to $4.5 billion by 2025, a compound annual growth rate of 16%.
While that’s a very bullish growth projection, it could actually be far too conservative.
According to Molson Coors (NYSE: TAP), one of the largest alcohol companies in the world that is headquartered in Canada, the Canadian cannabis beverages market could be worth as much as $2 to $3 billion dollars per year.
Here’s what Molson CEO and President Mark Hunter said about the Canadian beverages market potential.
“I think, if you take the average, then it suggests that the market may be somewhere between $7 billion and $10 billion in market value, with beverages somewhere between 20% and 30%, and that’s obviously non-alcoholic cannabis infused beverages. Even if you take the low end of that estimate, then it suggests that the beverages segment could be circa $1.5 billion of value. We’re well placed to take a meaningful share of that segment.”
With this enormous growth potential at stake, it’s no surprise that the largest alcohol companies in the world and a group of cannabis industry leaders are scrambling to cash in.
Today I am going to reveal five companies that are making big moves to capitalize on the cannabis beverages market. These companies are:
- early industry leader in cannabis beverages
- investing millions to develop new cannabis infused beverages
- expanding into international markets
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*All Charts from YAHOO Finance*
Canopy Growth Corp (TSE: WEED, NSYE: CGC) is the largest cannabis company in the world and a clear cannabis industry leader. Constellation Brands (NYSE: STZ), one of the largest alcohol brands in the world and brewer of Corona beer invested $4 billion in Canopy in August of 2018. One of the first big projects? Canopy CEO Bruce Linton has said that Canopy and Constellation have already developed cannabis beverage products and are currently building a bottling plant. I am expecting big things from this partnership. With Constellation’s global distribution network and powerhouse branding and marketing, Canopy could easily become the king of cannabis drinkables.
Constellation Brands’ cannabis partner is building a $150m US production facility
Tilray (NASDAQ: TLRY) is one of the largest cannabis companies in North America with a market cap of $4.8 billion. In December of 2018 Tilray announced a $100 million partnership with Anheuser-Busch InBev (NYSE: BUD), once of the largest alcohol companies in the world, to develop cannabis infused drinks for the Canadian market.
AB InBev Joins Pot Industry With Tilray Beverage Partnership
Hexo Corp (TSX: HEXO, OTC: HYYWF) is one of the largest cannabis companies in North America with a market cap of $1.6 billion. In August of 2018 Hexo announced a deal with Molson Coors (NYSE: TAP), once of the largest alcohol companies in the world, to develop a line of cannabis infused beverages. The joint venture will be a standalone company, will be led by Coors executive Brett Vye and have three board members appointed by Coors and two appointed by Hexo.
Molson Coors Bets on Pot With Cannabis-Drink Joint Venture
New Age Beverage Company (NASDAQ: NBEV) is a US based cannabis company and much smaller in size than the previous three companies with a market cap of $350 million. New Age is a ‘pure play’ on cannabis infused beverages – that means this company’s product line consists exclusively on cannabis beverage products. New Age’s share price surged in early April after announcing its line of CBD drinks will be sold at Wal-Mart.
New Age Beverages Surges Most Since November After Deal With Walmart
Kona Gold (OTC: KGKG) is the underdog in the group. This is a US-based cannabis beverages company that is still in the very early stages of growth with a market cap of $250,000. Kona Gold is busy expanding its product line and creating new distribution partnerships. This is a high risk, high reward stock. If Kona succeeds I expect shareholders to be rewarded handsomely.
The Big Picture on Cannabis Beverages and these 5 Cannabis Beverage Stocks
The cannabis drinkables market is expected to explode in the next four years. These five companies are making huge investments to capitalize on that big wave of growth.
Disclaimer: This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading. Michael Vodicka owns shares of Canopy Growth Corp.
