Amidst an underwhelming market for cannabis-infused products in Canada, Waterloo Brewing has suspended plans for developed cannabis-infused beverages.
In the lead-up to cannabis legalization across Canada, the $50 million, Kitchener, Ontario, craft brewer dedicated resources to secure licensing and prepared its facilities to produce cannabis-infused beverages.
But, “Since that time, the route to market for cannabis-infused beverages and the associated market opportunity has become less clear and highly uncertain,” the company announced. “Given the very strong and proven performance of its current growth drivers, the company is, for the time being, suspending any activity related to the production of cannabis-infused beverages.”
The company noted “significant growth” last year in all three of its main business segments: beer (craft, premium and value), its Seagram cooler and cider portfolio, and its copack business. “These are the areas that Waterloo Brewing will focus its attention on in the coming years.”
Despite all the anticipation about cannabis ingredients in foods and beverages, in both Canada and the U.S., actual sales are growing at unacceptably slow rates. Canopy Growth, one of the leaders in cannabis development, in March announced layoffs, greenhouse closings and a general pullback in its business.
