Friends, as we all await the election outcomes with bated breath, I’d like to call attention to an interesting deal that was announced on Wednesday, one that highlights a point I recently made in these Cannabis Musings. (link) Aphria, the Canadian licensed producer, has signed a deal to purchase SweetWater Brewing Company, a US-based craft beer company that makes, among other things, brews that “use terpenes and natural hemp flavors that, when combined with select hops, emulate the flavors and aromas of popular cannabis strains” (per the press release). (link)
What stood out to me in the press release was this statement: “The acquisition … provides the addition of key partnerships with leading U.S. distributors, retailers and on-premises customers strengthening Aphria’s ability to develop new distribution in the U.S. for its products.”
Similar to Acreage’s announcement a few weeks ago about marketing Canopy Growth’s THC beverage products here in the US, this move by Aphria is, to me, a recognition of the intersection between cannabis and alcohol, and the potential offered by alcohol’s production, distribution, and marketing presence here in the US. Consider also the recent news that Pabst Blue Ribbon is putting its iconic name on a THC-infused seltzer. (link)
The timing of when we’ll see a broader entry into cannabis by US-based alcohol producers and distributors will turn on how those election results pan out. Yet even without full federal legalization, I expect we’ll see more companies recognize this potential and find ways to tap into it.