Moosehead Breweries Ltd., one of Canada’s largest brewers, is getting into the cannabis business.
The Saint John, N.B.-based brewer announced it plans to form a joint venture with Sproutly Canada Inc., a cannabis producer and extractor, to develop pot-infused beverages that will be released later this year in the Canadian market.
“With the anticipated legalization of edibles in Canada later this year, Moosehead has made the strategic decision to enter the cannabis beverage market,” said Andrew Oland, CEO of Moosehead, in a release. “As one of the oldest brands in Canada and a leader in the beer category, we believe we are uniquely positioned to be a leader in the cannabis beverage category.”
The joint venture will be led by Matthew Oland, a former Moosehead vice president who ran the brewer’s supply chain operation. Moosehead will provide infrastructure support such as R&D, operations, procurement and distribution for the still-to-be-named joint venture, while Sproutly will provide its proprietary technology that takes water-soluble cannabis and infuses it into finished beverages.
Financial terms of the deal have yet to be finalized, Sproutly CEO Keith Dolo said in a phone interview with BNN Bloomberg. The company will have exclusive rights to use Sproutly’s technology for five years with a potential two-year extension, Dolo added. [Read More @ BNN Bloomberg]