Big brewer Molson Coors readying sales of marijuana-infused drinks available only in Canada

Trevor Hughes | USA TODAY

One of the world’s best-known breweries is teaming up with a Canadian cannabis company to make marijuana-infused drinks.

The move is a major signal that multinational corporations are growing increasingly comfortable with legal pot. Molson Coors’ Canadian arm announced Wednesday that it’s partnering with The Hydropothecary Corp. to develop non-alcoholic marijuana drinks for the Canadian market.

Canada begins legal marijuana sales nationally in October, but experts say the Molson Coors drink likely won’t be on the shelves until next summer.

While significant because Molson Coors is also such a big player in the market for mind-altering drinks, the move also reflects a trend by consumers away from smoking “flower” marijuana – the raw plant – and instead toward vaping and consuming cannabis-infused foods known as edibles.

“This is just the start of all these big companies coming in,” said Jessica Lukas, the vice president of consumer insights for marijuana data firm BDS Analytics. "It’s going to change the game for the existing market and for the consumers."

Several companies already make marijuana-infused drinks, including Colorado-based Dixie Elixirs. But those drinks lack the brand recognition that Molson Coors brings.

Other well-known names are also entering the space: The inventor of Blue Moon beer is launching three marijuana-infused drinks this fall in Colorado, and in California, Lagunitas Brewing has lent its name to a marijuana-infused "Hoppy Sparkling Water" drink.

More: Pot smokers are setting aside their joints in favor of edibles, pills and extracts

Constellation Brands, which makes Robert Mondavi wine, Corona beer and Svedka vodka, last year announced it was buying a stake in Canopy Growth, a Canadian marijuana firm, with the eye toward developing a cannabis drink. Experts say it's only natural alcohol companies would enter the marijuana market to protect their bottom line from eroding if consumers switch from alcohol to pot.

Conventional wisdom has long held that brewers have the most to lose under cannabis legalization as young men switch from beer to marijuana. But an April analysis by European bank Rabobank suggests women who have avoided illegal marijuana are likely to begin consuming pot more consistently once it's more broadly legalized. The analysis specifically highlighted professional women looking to relax after work without consuming calories from a glass or two of wine.

More: Trading wine for weed? Experts say trend likely to accelerate thanks to legal pot

Neither Molson Coors nor Constellation specified that their cannabis drinks would be anything like beer, although hops and marijuana share many similarities.

Canada's federal legalization gives large companies a change to dip their toes into water their lawyers are reluctant to enter in the United States. That's because marijuana remains entirely illegal at the federal level.

Additionally, the patchwork of state-level legalization laws makes it impossible to move cannabis products across state lines, eliminating much of the efficiency that large food and beverage manufacturers rely on. Nine states and the District of Columbia have legalized recreational marijuana use, although each regulates it differently.

Canada's legalization lets those companies bring their expertise to bear nationally.

“While we remain a beer business at our core, we are excited to create a separate new venture with a trusted partner that will be a market leader in offering Canadian consumers new experiences with quality, reliable and consistent non-alcoholic, cannabis-infused beverages," Frederic Landtmeters, the president and CEO of Molson Coors Canada, said in a statement.

Among the Molson Coors brands are Blue Moon, Coors Light, Mickey's malt liquor, Miller High Life and Zima (which is still available in Japan).

It's no wonder big companies are keeping a close eye on the opportunities: In the United States, medical and recreational cannabis sales will hit $11.7 billion this year, predicts cannabis analytics firm New Frontier Data, increase by 25% in 2019 and hit $25 billion in seven years.

For comparison, wine sales in the United States were worth $60 billion last year, according to the Beverage Information and Insights Group.

Lukas said she expects more companies like Molson Coors will join the new green gold rush, benefiting from their name-brand recognition and business expertise. Doing business in Canada will also be easier because marijuana firms there will be able to use banks.

"There’s definitely risks to their business, but there’s also plenty of opportunity," Lukas said.