Molson Coors Canada and cannabis producer The Hydropothecary Corporation (Hexo) have signed a definitive agreement to form a joint venture (JV) for developing non-alcoholic and cannabis-infused beverages for the Canadian market.

The JV will operate as an independent business unit with its own board of directors and management team.

Molson Coors Canada will hold a 57.5% controlling stake in the JV, while Hexo will retain the remaining ownership interest.

“Molson Coors Canada has a unique opportunity to participate in this exciting and rapidly expanding consumer segment.”

Molson Coors Canada president and CEO Frederic Landtmeters said: “Canada is breaking new ground in the cannabis sector and, as one of the country’s leading beverage companies, Molson Coors Canada has a unique opportunity to participate in this exciting and rapidly expanding consumer segment.

“This new venture is consistent with our growth strategy and our commitment to being the first choice for consumers and customers by ensuring that Canadians have access to high-quality products that meet their evolving drinking preferences.

“While we remain a beer business at our core, we are excited to create a separate new venture with a trusted partner that will be a market leader in offering Canadian consumers new experiences with quality, reliable and consistent non-alcoholic, cannabis-infused beverages.”

Subject to the satisfaction of certain conditions, the deal is expected to be completed by next month.

Through the new JV, the companies intend to explore the consumable cannabis market, which is expected to be legalised in Canada next year.

Hexo co-founder and CEO Sebastien St-Louis said: “Hexo continues to lead the way for smoke-free cannabis innovation in Canada. We are excited about this partnership with Molson Coors Canada, an iconic leader in adult beverages, as we embark on the journey of building a brand new market.”