Boston Beer subsidiary set to launch cannabis drinks in Canada

Boston Beer subsidiary BBCCC Inc. is preparing to debut non-alcoholic, cannabis-infused drinks in Canada with a view to potentially launching them in the US later.

BBCCC, which recently partnered with manufacturer Peak Processing Solutions and grower Entourage Health, plans to develop drinks containing cannabis biomass under the terms of its five-year agreement, while also using Entourage as an exclusive distributor for the beverages to broaden its reach across Canada,  according to Food Dive.

There are plans, however, to distribute in the US in the future after the drinks company reportedly hinted it would use Canada as a development base for products that could eventually become sold in the US, where federal regulations for cannabis are still being outlined.

Amidst the partnership, Paul Weaver, director of cannabis for BBCCC and the former head of innovation for cannabis producer Canopy Growth and Molson Coors revealed in a release statement that BBCCC is entering the market “while continuing to gauge the regulatory environment in the US for future expansion opportunities.

Weaver went on to add: “Since the early days of medical access, Entourage has cultivated accessible, quality-produced cannabis that is considered a benchmark in a regulated market — and they truly exemplify what we look for in our suppliers. This partnership is further strengthened by Peak Processing Solutions, with the talent and systems in place to ensure every drink is prepared with the highest care and excellence.” 

The global cannabis beverages market is estimated to reach US$2.8 billion, by 2025, and is projected to grow at a CAGR of 17.8% from 2019 to 2025, according to a report by Million Insights, highlighting that the sector is heavily fragmented due to the presence of medium and small-scale companies. 

Leading players in the cannabis beverage segment include: The Alkaline Water Company; New Age Beverages Corporation; Koios Beverage Corporation; Phivida Holdings Inc.; Dixie Brands Inc.; VCC Brand; Hexo Corp; Keef Brand; Canopy Growth; and Aphria. The report noted that key players in the market are focusing on mergers and acquisitions and new product launches as a part of their strategy to increase their revenue. For example, in 2017, Constellation brands partnered with Canopy Growth to develop new products, while in 2019, Alkaline water company acquired AQUAhydrate to increase its distribution network.

The production line for BBCCC’s new cannabis-infused drinks will reportedly begin in Q4.