This article originally appeared on The Huddle has been fact-checked and confirmed accurate and true.
Saint John-based Moosehead Breweries is forming a joint venture with Sproutly, a Vancouver-based cannabis company with a facility in Toronto, to develop, produce and sell non-alcoholic, marijuana-infused beverages in Canada.
The joint venture, which will be headed by Moosehead senior executive Matthew Oland, will use Sproutly’s proprietary and naturally-produced water-soluble cannabinoid in the beverages.
“With the anticipated legalization of edibles in Canada later this year, Moosehead has made the strategic decision to enter the cannabis beverage market. 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,” said Moosehead CEO Andrew Oland in a press release.
“With their advanced technology and our long-standing product development experience, we expect to bring to Canadian consumers cannabis beverages that address the major issues currently limiting appeal of this category in other markets; a beverage that 1) actually tastes good, and 2) provides an immediate and controllable cannabis experience lasting up to 90 minutes.”
The joint venture will be half-owned by Moosehead and half owned by Sproutly. Moosehead will provide infrastructure support including as research and development, operations, procurement, finance, and distribution, which will allow the joint venture to fast-track its go-to-market strategy. Sproutly’s cultivation facility and processing license will advance the formulation work that has already been completed until now.
The joint venture will focus on the Canadian market, initially, and look at places like Europe if they legalize recreational cannabis.
“After careful analysis of the cannabis industry and the cannabis beverage opportunity in Canada, we believe that Moosehead and Sproutly together are well positioned to become a significant player,” said Matthew Oland, the joint venture’s incoming CEO.
“The JV’s ability to leverage Moosehead’s rich history of building adult-beverage brands, and its established R&D and operational infrastructure, will enable the JV to bring great tasting cannabis beverages to Canadian consumers. The Infuz20 technology delivers a natural cannabis beverage experience, with an ‘onset and offset’ time similar to traditional flower cannabis, without the need for chemical modification. We believe this will be a game changer for the sector.”
The companies say Infuz2O beverages can help address the industry challenge of overconsumption of oil-based edibles and beverages. It also provides the capability to produce a clear cannabis beverage that is a lot easier and faster to formulate compared to those using emulsifiers, encapsulation or chemical modification techniques, among other things.
Infuz2O is a cannabis solution that fully dissolves in water that doesn’t use added chemicals. It can deliver the cannabis strain experience that can currently only be gained through smoking, the companies say.
“Moosehead is a truly iconic brand and we are very excited to partner with a company that possesses such deep-rooted Canadian heritage and over 152 years of history in the beer industry. Partnering with a company of this calibre is a strong validation of APP Technology and Infuz20,” said Spoutly CEO and Director Keith Dolo in the release.
“This partnership with Moosehead marks an important milestone in Sproutly’s mission of delivering a safe and consistent whole plant experience from cannabis, with a lead position in the beverage market. We have developed a relationship with Moosehead built on trust and our shared vision of creating safe, responsible and high-quality cannabis beverages and we look forward to making this a reality for Canadian consumers,” he said.
Before it can be formalized, the joint venture still needs to satisfy conditions that include the execution and delivery of various transaction agreements, governance documents and supply agreements. The companies plan to form the joint venture on or before May 31.