Cannara Biotech signs LoI with microbrewery to develop cannabinoid-infused beverages

Cannara Biotech has signed a letter of intent (LoI) with a Quebec-based microbrewery to develop a wide range of cannabinoid-infused beverages, including non-alcoholic beer, kombucha and cider.

The beverages will be available once regulations relating to cannabinoid-containing edibles and beverages come into effect next October.

Cannara Biotech president and CEO Zohar Krivorot said: “Many of the world’s most successful beverage companies have aggressively invested in cannabinoid-infused product development underscoring this product category’s market potential.

“This agreement also underscores our commitment in building Cannara Biotech into a premium Canadian cannabis company by leveraging our facility’s unique size and flexibility, partnering with industry leaders and supporting these joint ventures with both financial and human capital.”

Cannabinoid-infused beverage sales are expected to reach $260m in North America by 2022.

This partnership is the first of several being planned by Canara Biotech as part of its collaboration strategy to produce edibles, pet products, cosmetics and other beverages for the Canadian market.

In another development, Cannara Biotech is developing a 625,000ft² indoor cannabis cultivation facility in Farnham, Quebec. It will produce high-grade indoor hydroponically grown cannabis and derivative products.

Leveraging this facility, the company plans to work with partners to generate revenue from licensing, rental and joint venture arrangements.

In November 2018, it was reported Molson Coors is planning to gain a share of the Canadian cannabis-infused beverages market after edibles are legalised this year.

Products such as dried flower cannabis have been available for recreational purposes in the country since 17 October 2018.