Diageo Rumored To Be Looking For A Cannabis Deal

What began last year, when Constellation Brands stepped into the pot biz, is spreading like wildfire. And now Diageo is rumored to be looking at possible investments with cannabis producers.

Here’s the deal…

In a story that first surfaced at BNN Bloomberg, Diageo, home to huge brands like Gordon’s Gin and Guinness, might potentially be entering a field already occupied by drinks companies including Constellation Brands and Molson Coors.

Based on reports from “multiple sources familiar with the matter” BNN Bloomberg is reporting that Diageo has met with several Canadian companies to discuss a possible investment or collaboration to create new cannabis-infused drinks.

The news site also reported that a “senior executive team” from the company had attended a marijuana conference in Toronto two weeks ago during which they held several meetings to “discuss possible partnerships or an equity arrangement.”

And based on those rumors the Drinks Business noted “that shares in several cannabis companies have risen dramatically, including Tilray, Cronos Group, Apria (already working with Southern Glazer’s Wine and Spirits) and Aurora Cannabis.”

Earlier his month, Molson Coors announced a deal with The Hydropothecay to launch a new stand-alone business under the HEXO moniker which will develop “non-alcoholic, cannabis-infused beverages for the Canadian market once pot becomes legal on October 17^th.

Constellation Brands, which bought a stake in Canopy Growth in October last year, also increased its stake in cannabis company to 38%, this month. According to the company, the US$4 billion deal is “the largest to date in the cannabis space.” The investment further cements Canopy Growth as its exclusive global cannabis partner and will enable the Canadian pot producer to “build and/or acquire key assets” in 30 countries.

In May, the Canadian division of mega-distributor Southern Glazer’s Wine and Spirits partnered with marijuana producer Aphria to create a corporate subsidiary to distribute its products across Canada once recreational pot becomes legal in October.

And in July, a team of Canadian scientists announced that they were attempting to brew beer using the “stalks, stem and roots of the cannabis plant.”