It is amazing just how many huge, corporate conglomerates have invested in the marijuana industry. These partnerships have grown quickly and will continue to do so the next few years. These relationships have made stock market prices rise and fall on the NYSE, NASDAQ and Canadian exchanges. They have turned the heads of many Wall Street investors and in the past few months, all cannabis related stocks have lost millions.
Here are a few examples of the relationships:
Altria Group is the parent company of Phillip Morris who owns numerous cigarette brands including Marlboro and Virginia Slims. They are the largest cigarette company in the USA. They are also the largest shareholder in the Cronos Group with over $1.8-billion invested. Cronos is listed on the NASDAQ Exchange and is one of the world’s most popular cannabis stocks.
Constellation Brands owns Corona & Modelo Beers, Woodbridge Wines, Black Velvet Whiskey and Svedka Vodka. They are the largest beer importer in the USA and a Fortune 500 company. Constellation spent over $4-billion acquiring Canopy Growth but has not been able to keep the stock profitable. Canopy lost $282.7-million last quarter and the jury is still out if the investment was worth it.
Anheuser-Busch is owned by InBev and is the world’s largest brewer. The company entered into a $100-million joint venture with Tilray through their LaBatt’s and High Park Canadian subsidiaries. Tilray was the first cannabis company on NASDAQ but is struggling to make money.
Molson Coors Brewing Company produce Coors, Coors Light, Killian’s Irish Red, Blue Moon, Keystone, Molson, Carling Black Label and Zima. They also have a joint venture deal with Hexo who is one of Canada’s largest cannabis companies. Like all other cannabis companies, making profit in the marijuana stock-market world is not easy and Hexo stock is in a downspin.
Other major corporations who have invested into the cannabis/marijuana industry include: Coca-Cola who has dealings with Dixie Brands (a cannabis company located in Colorado), Laqunitas Brewing Company is working with Absolute Xtracts and Arizona Beverage Company has a deal with Aurora Cannabis.
Will these companies turn things around and become profitable investments for these major corporations? I think that will happen down the road, but it might take some time as USA laws and expansion plans have kicked the majority of all cannabis/marijuana stocks to the curb in late 2019.