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Labatt to Stop Production of CBD Beverages in Canada

Keegan MacDonald by Keegan MacDonald
May 11, 2022
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One of the largest beer producers in Canada is halting the production of their non-alcoholic CBD beverage. Labatt Breweries announced a few weeks ago that their drink company, Fluent Beverages, is being shut down in Canada. Fluent Beverages was created out of a partnership between Budweiser, Tilray, and Labatt, aimed at creating a large line of CBD infused beverages.

The inner workings of why this proposition is being dissolved is complicated. The relationship between Tilray, Budweiser, and Labatt was ended a few months ago, leaving Tilray in the hands of Labatt. Labatt explained they wished to operate both as a wholly owned subsidiary with the goals of producing and commercializing CBD-infused beverages. Labatt refused to comment on why Fluent Beverages was shutting down in Canada, but many experts believe the reasons are because of the lack of market in Canada.

The comments Labatt did issue include a thank you to the Fluent team and their workers, as well as a promise to continue watching the cannabis sector in Canada. “The learnings from Fluent will be used to evaluate future opportunities within the category, and we will continue to monitor the cannabis sector closely,” said Tamar Nersesian, Labatt’s communications director.

Currently, regulations in Canada require businesses to have a license to sell any recreational beverages containing THC or CBD. This means that retail giants like Walmart are unable to sell these beverages within their stores. Canada’s government has stated they are planning on changing these rules, opening the door for CBD to be more widespread within the country.

Read the unedited article here.

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