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Chicago-based cannabis producer Green Thumb Industries (OTCQX:GTBIF) has raised eyebrows throughout the beverage and weed industries with a recent proposal to merge with Boston Beer Co. (NYSE:SAM), the iconic American brewer behind Sam Adams lager.
Green Thumb’s primary motivation for the move appears to be gaining access to a major U.S. exchange. The Wall Street Journal reports that Green Thumb CEO Ben Kovler outlined this central objective in a letter to Boston Beer founder and chairman Jim Koch, as well as other potential benefits for both companies.
A successful merger would allow Green Thumb, currently listed on a Canadian exchange and over-the-counter in the U.S., to finally gain access to a prestigious exchange like the New York Stock Exchange (NYSE). News about the letter sent Boston Beer’s stock price soaring over 20% last Friday, noted the WSJ.
However, despite cannabis rescheduling moving forward, federal restrictions still prevent companies in the sector from directly listing on such major exchanges.
Beyond exchange access, Kovler's letter also envisioned a combined entity positioned to develop innovative cannabis-infused products like edibles, drinks and pre-rolled joints. Additionally, he said the merger could create a more powerful industry player with greater clout in mergers and acquisitions.
Interestingly, Boston Beer already dipped it toe into the cannabis market with its TeaPot brand of cannabis-infused iced tea, which is available in Canada. But this wouldn’t be the first cannabis-alcohol industry tie-up. Last year, Tilray Brands (NASDAQ:TLRY) acquired 8 craft beer brands from Bud Light’s parent company Anheuser-Busch InBev (NYSE:BUD). In a recent panel discussion at the Benzinga Cannabis Capital Conference in Florida, industry experts noted that THC-infused beverages could soon potentially outsel traditional staples like wine and vodka.
Nevertheless, while Boston Beer’s own THC TeaPot hasn’t cannibalized sales of its core brands, the proposed merger has reignited discussions about the potential convergence of the cannabis and alcohol industries.
Photo: Courtesy of Engin Akyurt and Washarapol D BinYo Jundang by Pexels and Linkedin.
