Beverage makers have been getting into Canadian cannabis in a big way... The market has been underestimating the potential size of the beverage industry but it is becoming apparent how interested these large alcohol companies are to not miss out and secure a supply...
Diageo Plc. is in talks with at least three Canadian cannabis firms, according to a report from BNN Bloomberg, citing sources familiar with the matter who declined to speak on-the-record.
The U.K.-based maker of Guinness beer and Crown Royal Canadian whisky is said to be discussing a potential investment or collaboration with the goal of creating cannabis-infused beverages, according to the sources.
Diageo’s (DEO.N) reported interest in the Canadian cannabis sector comes on the heels of Constellation Brands Inc. (STZ.N) upping its stake in Canopy Growth Corp. (WEED.TO) with a $5 billion investment earlier this month, and the announcement of a drinks-based joint venture involving Molson Coors Brewing Co. (TAP.N) and Hydropothecary Corp. (HEXO.TO).
The stage of the reported talked remains unclear. BNN Bloomberg references comments from a cannabis executive who suggested a deal may be close after meeting with the London-based drinks maker.
A Diageo spokesperson declined to confirm the talks, telling Yahoo Canada Finance, “We never comment on speculation. As we’ve said before, we are monitoring this space closely.”