Claim Your Stake in the "Red Bull of Marijuana"

By Matthew Milner, on Wednesday, October 30, 2019

In 1976, a man in Thailand named Chaleo Yoovidhya developed a new type of drink.

Containing caffeine, sugar, and a protein called taurine, it quickly became popular among truck drivers and laborers in need of an energy boost.

A few years later, an Austrian named Dietrich Mateschitz travelled to Thailand for work and found that this drink cured his jet leg. So he invested in it — and before long, it made him rich. Today, he’s the 53rd richest person in the world, worth $19.5 billion.

The drink I’m writing about is Red Bull. Today, 6.7 billion cans of it are sold every year.

Why am I telling you all this? Because you have an opportunity today to invest in what could become the Red Bull of the marijuana market.

Let me explain.

A New Type of Beverage

Before Red Bull burst onto the scene, the market for “energy drinks” was untapped.

Today, a similar situation presents itself, although the market could be even bigger.

I’m referring to cannabis-based drinks, or as they’re known, “canna-beverages.”

You see, when people think about marijuana, they generally think about smoking it, vaping it, or eating it inside an “edible.”

But smoking causes lung damage, vaping has been in the news lately for causing significant health problems, and edibles can take as long as 30 minutes to “kick in.”

Canna-beverages have none of these disadvantages. That explains why research firm Zenith Global expects them to become a $1.4 billion sector by 2023.

But if the big beverage companies have their way, that’s just the start…

Big Beer Jumps In

For example, one by one, the world’s largest beer companies have recently announced plans to create drinkable cannabis products. For example:

  • Molson Coors (NYSE: TAP) started a joint venture with pot producer HEXO (NYSE: HEXO.)
  • Anheuser-Busch InBev (NYSE: BUD) invested $50 million into a venture with Tilray (Nasdaq: TLRY.)
  • And Constellation Brands (NYSE: STZ), the owner of Corona and Modelo, invested nearly $4 billion to take a stake in Canopy Growth (NYSE: CGC.)

Here’s what a Canopy executive said about these efforts to create a new drink category:

“The goal is to create a [new] category. Before Red Bull, there was nothing like it. That’s what this looks like. It fills a new need.”

Why are big beer companies going after this opportunity so aggressively?

Because they have to. They’re scared

From Booze… to Cannabis… to Canna-Beverages

You see, consumers are starting to choose cannabis over booze.

As investment bank Cowen, Inc. found, because of increasing consumer demand for marijuana-based products, "Alcohol could be under pressure for the next decade.”

Its findings suggest that, now that cannabis is becoming more and more accessible, 80% of consumers will reduce their alcohol consumption.

Essentially, as Brandy Rand, an executive at alcohol market research firm IWSR, said, today’s consumer wants “something that looks, tastes, and feels like a beverage alcohol product but has no calories, no hangover.”

This is exactly what the big beer companies are aiming to deliver. And if they succeed, they can maintain their dominance over how we relax — and maintain their profits.

Canna-Bev Profits

The companies you learned about today are expected to be the biggest players in the canna-beverage sector.

For a conservative investor, beer brands like Molson and Anheuser-Busch provide a diversified portfolio of pot and non-pot beverages to smooth out earnings.

And for a more aggressive investor, pot brands like Tilray and Canopy offer a portfolio of offerings that includes beverages, as well as all the other types of cannabis products.

But if you’re interested in learning about high-growth cannabis investments outside of the beverage markets, tune in again tomorrow…

That’s when Wayne will introduce you to a cannabis sector that’s on fire right now…

So stay tuned!

Best Regards,
Matthew Milner
Matthew Milner


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