Moosehead Breweries has entered a joint venture with Spoutly to develop, produce, and market non‐alcoholic cannabis-infused beverages in Canada.

Canada’s oldest and independent brewery will use Sproutly’s proprietary, naturally produced water soluble cannabinoids known as ‘Infuz2O’ to produce the drinks.

According to the news release, both companies will bring their respective strengths to the joint venture to develop a line of great tasting cannabis beverages featuring a rapid onset and offset effect unique to the category. 

The joint venture is structured as a 50/50 equity ownership with Mathew Oland, one of Moosehead’s senior executives and Oland Family member, to lead the Joint Venture as Chief Executive Officer

Moosehead will provide infrastructure support such as R&D, operations, procurement, finance, and distribution while Sproutly will provide proprietary custom compositions using Infuz2O for cannabis beverages in Canada

There is also the ability for the joint venture to enter the European market once recreational cannabis use is legalized.

“With the anticipated legalization of edibles in Canada later this year, Moosehead has made the strategic decision to enter the cannabis beverage market. As one of the oldest brands in Canada and a leader in the beer category, we believe we are uniquely positioned to be a leader in the cannabis beverage category.” said Andrew Oland, chief executive officer of Moosehead. 

He added: “As a 152 year old company spanning six generations, we are very selective about new business opportunities. After a significant amount of due diligence on Sproutly’s APP technology and Infuz2O water soluble cannabinoids vs other competitive technologies, we are excited to announce this joint venture.

“With their advanced technology and our long-standing product development experience, we expect to bring to Canadian consumers cannabis beverages that address the major issues currently limiting appeal of this category in other markets; a beverage that: 1) actually tastes good; and 2) provides an immediate and controllable cannabis experience lasting up to 90 minutes.”