Sunday, November 3, 2019 12:01 PM EST
The sale of marijuana-infused beverages became legal in Canada on October 17 and such products will be launched into the market place as early as mid-December. That announcement saw some short-lived positive price action with the 8 beverage companies intending to become major players in the marijuana-infused beverage sector but they continue to sink in value, down 18.8% since the end of September. Below is the performance of each of the 8 companies in the month of October.
Experts predict that the global cannabis-infused beverage market will jump from its current value of $89M to $1.4B by 2023 and to over $4.4B by 2025 and that has resulted in established major alcoholic beverage companies such as Molson Coors Brewing Company (NYSE:TAP), Anheuser-Busch InBev SA (NYSE:BUD) and Constellation Brands Inc. (NYSE:STZ) buying stakes in, or entered into joint ventures with, the likes of HEXO Corporation (NYSE:HEXO; TSX:HEXO), Tilray Inc. (Nasdaq:TLRY) and Canopy Growth Inc. (TSX:WEED; NYSE:CGC) but it’s usually innovative, early mover, smaller companies that benefit the most in these market breakouts.
Below are the 8 fledgling cannabis companies currently vying to become the next "monster" beverage stock. On average the 8 companies I allude to:
- declined 18.8% in October vs. a total cannabis stock category decline of approx. 12.7%
- declined 12.7% in September
- declined 14.3% in August
- declined 17.8% in July and has
- declined by 48.2% from its March/April peak.
Specifically, in October,
- Zenabis Global (ZENA, ZBISF) declined 75.3%
- Hill Street Beverage (BEER) declined 58.8%
- Koios Beverage (KBEV, KBEVF) declined 28.0%
- Dixie Brands (DIXI.U, DXBRF) declined 23.8%
- Sproutly Canada (SPR) declined 22.6%
- New Age Beverages (NBEV) declined by 2.5%
- Tinley Beverage (TNY, TNYBF) declined by 2.0%
- BevCann Enterprises (BEV, BVNNF) increased by 4.4% albeit still down 39.7% from its March/April high.