Major Canadian Alcohol Distributor Contracts With Pot Producer

The melding of differing highs, alcohol and marijuana, continues in Canada, with word that Cannabis producer Hydropothecary has signed a five-year deal with a major Quebec alcohol distributor, ahead of Canada’s expected marijuana legalization this year.

And you don’t think America’s alcohol distributors took notice of that?

Here’s the deal…

On Wednesday, Hydropothecary, an award-winning medical cannabis producer located on a 143-acre farm in Gatineau, Quebec, announced that they had entered into a 5-year agreement with the Société des alcools du Québec (Quebec Alcohol Corporation/SAQ) that allows them to exclusive rights of distribution for the company’s full line of pot products which includes cannabis buds, powders and oils.

And given that SAQ holds a virtual monopoly in Quebec (that’s right they are the ONLY licensed distributor in the province), this is a huge win for the Canadian cannabis producer.

Under the terms of the agreement, Hydropothecary will supply 20,000kg of cannabis products in the first year, 35,000kg in the second and 45,000 in the third…with the volume for the final two years will be determined at a later date.

This from Hydropothecary Co-founder and CEO, Sébastien St-Louis…

“Becoming the preferred supplier to the Quebec market out of the gate post legalization is a source of great pride and a vote of confidence in our ability to scale operations to meet our supply commitment.

This agreement marks an important step in the execution of our growth strategy, which is focused initially on the Quebec market by expanding our Gatineau facilities and hiring new employees, and then establishing our presence in other Canadian markets.”

The drinks business is increasingly crossing over into the cannabis world…and as laws fall this cross-pollination of highs will continue to grow as will the businesses that support them.

Just last month Keith Villa, who developed and oversaw the Blue Moon brand for MillerCoors for more than two decades announced that he was getting into the pot beer biz.

In February, Tony Magee, the founder and Executive Chairman of Lagunitas Brewing  compared the craft beer biz with the ‘budding’ legalized marijuana industry in a keynote address to thousands at the National Cannabis Industry Association’s Seed to Sale Show held in Denver.

Pot Beer Image Credit: Mitchell Maglio

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