The cannabis beverage stocks we’ve identified could get a lift following media reports of talks between Coca Cola and Aurora Cannabis Inc. (TSX:ACB) to develop CBD-infused beverages
SmallCapPower | September 18, 2018: On September 17, 2018, multiple sources reported to BNN Bloomberg that Coca-Cola is in talks with Aurora Cannabis Inc. (TSX:ACB) to develop CBD-infused beverages, signifying the entry of yet another iconic brand into the industry. This follows Constellation Brands’ investment in Canopy Growth Corp in August 2018, and the rumored entry of Diageo into the Canadian cannabis space, also in August 2018. According to a report from the Hemp Business Journal, the U.S. consumer CBD market is expected to grow from $202M in 2015 to $2.1B in 2020, which presents a significant opportunity for companies to expand into rapidly-growing cannabis/hemp businesses. All of this could boost the share prices of the cannabis beverage stocks on list today.
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Hill Street Beverage Company Inc. (TSXV:BEER) – $0.42
Beverages
Hill Street Beverage is a Toronto-based company in the business of producing and distributing alcohol-free beverages. The Company recently partnered with Vin First Innovative Packing to produce cannabis-infused beverages. The Company is also partnered with Cannabis Compliance Inc. to ensure regulatory compliance as it enters this market, as well as Lexaria Bioscience Corp., which provides the technologies necessary to produce cannabis-infused drinks.
- Market Cap: $36 Million
- Last 30 Day Returns: +75.0%
- YTD Returns: +104.9%
Tinley Beverage Co. (CSE:TNY) – $0.74
Beverages
Tinley Beverages is a Toronto-based company offering a variety of cannabis-infused beverage products. The Company produces its products in Los Angeles and is targeting distribution to key markets along the West Coast. Tinley sells its products at several premium retailers in the LA, including Lazy Acres, Sprouts, as well as gas stations. The Company is building a 20,000 square foot manufacturing facility near LA to further expand production capacity and to carry out R&D.
- Market Cap: $67 Million
- Last 30 Day Returns: +19.8%
- YTD Returns: -66.2%
WeedMD Inc. (TSXV:WMD) – $2.19
Cannabis
WeedMD is a Canada-based company involved in the production and distribution of several cannabis-based products, including flower and oils. On August 15, 2018, WeedMD and Phivida Holdings announced the signing of an agreement to jointly operate Cananbis Beverages Inc. (CanBev), a separate entity operating out of WeedMD’s facility in Strathroy, Ontario. The joint venture is intended to preemptively position CanBev to capture a significant share of the Canadian consumable cannabis market. CanBev is expected to develop, produce, and market cannabis-infused beverages to be sold in Canada and internationally.
- Market Cap: $236 Million
- Last 30 Day Returns: +39.5%
- YTD Returns: -13.8%
HEXO Corp. (TSX:HEXO) – $7.70
Cannabis
HEXO Corp. (TSX:HEXO), formerly The Hydropothecary Corporation, is a Canada-based company that recently partnered with Molson Coors with a 42.5% interest to jointly pursue opportunities in the Canadian cannabis-infused beverage market. As of the latest quarterly filing, the Company holds cash and short-term investments in excess of $249M, with the intent of prioritizing capital allocation towards cannabis-infused beverages.
- Market Cap: $1.5 Billion
- Last 30 Day Returns: +67.8%
- YTD Returns: +72.3%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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