Big Business Positions Itself to Capitalize on Green Rush

Marijuana is the next big thing in the United States. It is one of the fastest-growing industries in the country, and corporates are leaving no stone unturned to leverage its acceptance in many states.

But the time has come when the cannabis industry is juxtaposed with the country’s brewing and beverage companies. The rise of legalization measures and commerce in cannabis over the years has made the plant a sales competitor to major beer and beverage brands.

Most of them are considering joining the weed trade and are now diversifying their portfolios with the plant. Let’s take a look at them here:

Coke and Pepsi

Coca-Cola entered the cannabis scene when it apparently held talks with Canadian company Aurora Cannabis to make drinks powered by cannabidiol, a marijuana ingredient that promises therapeutic benefits.

This move by the beverage giant is a response to two incentives: declining soda consumption and capitalizing on legal cannabis. If the partnership materializes, it would be a groundbreaking move that would mark the foray of the most iconic consumer brands into the cannabis sector.

PepsiCo is also not lagging in the race to enter the marijuana sector. Its CFO Hugh Johnston is taking a critical look at the industry and is considering an investment in the fledgling domain.

Constellation

Our big beer is noticing that cannabis is appealing to the senses of more and more people. As such Constellation Brands (owner of Modelo and Corona) found an opportunity in investing in legal weed.

The brewing company acquired 10 percent stakes in Canopy Growth, a Canada-based cannabis producer. Not to forget, it also raised the ante in September 2018 when it pumped in an additional four billion into the cannabis producer’s business.

Lagunitas

The California-based brewery, founded by Tony Magee, concocted its Undercover Investigation Shut-Down Ale in memory of a secret police investigation into their business for supposed weed consumption at their brewery in 2005. The Waldos' Special Ale and the SuperCritical Ale are two other cannabis-inspired brews from Lagunitas, which is partly owned by Heineken.

The above are just a few big businesses who are capitalizing on the green rush in America. Top-end retailer Barneys is another example of how brands are embracing the cannabis culture. The department store is the first one in the country to get into the cannabis trade.

As such, it’s entirely natural for both luxury and large-scale retailers to take an interest in this growing market as state and local laws relating to the plant slacken.