E Marijuana-Infused Beverage Stocks Sank 19% In October Despite Advent Of Cannabis 2.0

The sale of marijuana-infused beverages became legal in Canada on October 17 and such products will be launched into the market place as early as mid-December. That announcement saw some short-lived positive price action with the 8 beverage companies intending to become major players in the marijuana-infused beverage sector but they continue to sink in value, down 18.8% since the end of September. Below is the performance of each of the 8 companies in the month of October.

Experts predict that the global cannabis-infused beverage market will jump from its current value of $89M to $1.4B by 2023 and to over $4.4B by 2025 and that has resulted in established major alcoholic beverage companies such as Molson Coors Brewing Company (NYSE:TAP), Anheuser-Busch InBev SA (NYSE:BUD) and Constellation Brands Inc. (NYSE:STZ) buying stakes in, or entered into joint ventures with, the likes of HEXO Corporation (NYSE:HEXO; TSX:HEXO), Tilray Inc. (Nasdaq:TLRY) and Canopy Growth Inc. (TSX:WEED; NYSE:CGC) but it’s usually innovative, early mover, smaller companies that benefit the most in these market breakouts.

Below are the 8 fledgling cannabis companies currently vying to become the next "monster" beverage stock. On average the 8 companies I allude to:

  • declined 18.8% in October vs. a total cannabis stock category decline of approx. 12.7%
  • declined 12.7% in September
  • declined 14.3% in August
  • declined 17.8% in July and has
  • declined by 48.2% from its March/April peak.

Specifically, in October,

  1. Zenabis Global (ZENA, ZBISF) declined 75.3%
  2. Hill Street Beverage (BEER) declined 58.8%
  3. Koios Beverage (KBEV, KBEVF) declined 28.0%
  4. Dixie Brands (DIXI.U, DXBRF) declined 23.8%
  5. Sproutly Canada (SPR) declined 22.6%
  6. New Age Beverages (NBEV) declined by 2.5%
  7. Tinley Beverage (TNY, TNYBF) declined by 2.0%
  8. BevCann Enterprises (BEV, BVNNF) increased by 4.4% albeit still down 39.7% from its March/April high.
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