Canadian companies are preparing to roll out cannabis-infused beverages to tap a market estimated to reach half-a-billion dollars.
British Columbia-based The Valens Co. announced the launch of a line of cannabis-infused beverages in Ontario this week, produced under a white label agreement with Iconic Brewing subsidiary A1 Cannabis Co.
Quebec’s cannabis regulator, Société québécoise du cannabis (SQDC), launched its first cannabis drink this week – a CBD beverage made by Fluent Beverages, a Canadian joint venture between cannabis producer Tilray and AB InBev.
Valens’ new products include CBD- and THC-infused beverages and are expected to be available in some stores this month.
The market for marijuana-infused beverages is forecast to reach 529 million Canadian dollars ($470 million), according to accounting firm Deloitte.
Experts predict cannabis-infused beverages will apply pressure to an already-downtrodden beer industry.
The beer market suffered its biggest decline in years in 2019.
And that was before cannabis beverages hit the market.
A survey by Deloitte found that one-third of likely cannabis consumers see marijuana beverages as an alternative to alcohol.
The white label agreement between Valens and A1 Cannabis Co. will see a minimum of 2.5 million cannabis-infused beverages will be produced over five years.
Shares of Valens trade on the TSX Venture Exchange as VLNS.