Moosehead Breweries, the oldest and largest independent brewery in Canada, follows the example of the other major brewing companies in North America like Labatt (AB InBev), Constellation Brands, Molson Coors and Lagunitas (Heineken) to form a joint-venture (JV) and enter the cannabis-infused beverage market in Canada once it is legalized.
The 152-years old family owned brewery announced today to form a 50/50 joint venture between OCC Holdings, an affiliate of Moosehead, and Sproutly Canada. Both companies will bring their respective strengths to the joint venture to develop a line of cannabis beverages featuring a rapid onset and offset effect unique to the category.
Sproutly will exclusively license its proprietary, naturally produced water soluble cannabinoids known as Infuz2O for cannabis beverages for a period of 5 years with a possible 2-year extension.The final product will be a clear cannabis beverage that is much easier and faster to formulate than its competitors who will be using emulsifiers, encapsulation or chemical modification techniques. It can deliver the cannabis effect as early as 5 minutes and last up to 90 minutes, providing an edible cannabis experience similar to traditional flower cannabis without the need to inhale smoke.
Moosehead will provide the infrastructure support for the JV such as R&D, operations, procurement, finance, and distribution. Matthew Oland, one of Moosehead’s senior executives and Oland Family member, is to lead the JV as chief executive officer.
The JV will be structured as a standalone company with its own board of directors and management team.Sproutly and Moosehead will each hold a 50% interest in the JV and have the right to nominate 3 directors. Moosehead shall appoint the Chief Executive Officer and Sproutly shall appoint the Chairperson of the board of directors of the JV.
“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. “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.”
About Moosehead Breweries Ltd.
In 1867, the Oland family – led by matriarch Susannah Oland – began brewing and selling October Brown Ale on the family farm located on the Dartmouth shore of the Halifax Harbour. What started as a small brewery, grew with grit and determination throughout time as the commitment to brewing quality beer passed on from generation to generation. Located in Saint John, New Brunswick, Moosehead is the last major brewery in Canada owned by Canadians. Now in its sixth generation of ownership, the Oland family’s passion for beer has helped them steer Moosehead through devastating fires, Prohibition, the Great Depression, two world wars, obstructive trade barriers, and bruising competition from breweries 100 times its size. As Canada’s oldest and largest independent brewer, the company stands committed to the same values that transformed a small brewery in Saint John, NB into a Canadian icon of resilience. Moosehead sells its beer throughout Canada, the United States and in 15 other countries around the world under its 14 wholly-owned and 8 partner brands.
In 2017, the brewery hit the headlines when former head of the company Dennis Oland was convicted to life in prison for the 2011 murder of father Richard Oland after a highly publicized four-month trial, making way for current president and son Andrew.
About Sproutly Canada, Inc.
Sproutly’s core mission is to become the leading supplier to the cannabis beverage and edibles market. The Company’s Toronto based facility, licensed under the Cannabis Act, was built to cultivate pharmaceutical grade cannabis to supply a technological breakthrough in producing and formulating the first natural, truly water-soluble cannabis solution. The water-soluble ingredients and the bio-natural oils will deliver revolutionary brands to international markets that are clamouring for well-defined commercial products. Sproutly’s business focus is to execute on partnerships with local and globally established consumer brands to leverage their existing customer bases, further expand brand loyalty, assist with marketing, and support distribution networks to deliver this scientific breakthrough with speed and efficiency worldwide.
