Tilray was Real Money's stock of the day on Thursday, Dec. 20, 2018.
Canadian cannabis company Tilray (TLRY) announced Thursday, Dec. 20, 2018, that it was teaming up for a product research deal with AB InBev (BUD) one of the world's largest brewers, reported TheStreet contributor Scott Van Voorhis.
The research partnership will explore non-alcoholic beverages that contain THC and CBD, both key chemicals found in marijuana but with very different effects. THC is the psychoactive chemical in marijuana the produces the high, while CBD is non-psychoactive and blocks the high.
The companies said the partnership is confined to Canada, where, unlike the U.S., marijuana is now legal at the federal level. Decisions about the commercialization of the research will be made in the future.
As part of the deal, each company will pitch in $50 million, with Tilray taking part through its subsidiary, High Park Co., which develops, distributes and sells cannabis products in Canada.
"We are delighted to be joining forces with a world-leading beverage company, AB InBev, to research how to create enjoyable cannabis beverage products," said Brendan Kennedy, CEO of Tilray, in a press release.
At the event, Cramer had asked Bill Newlands, COO of Constellation, and Bruce Linton, CEO of Canopy, how the companies plan on monitoring the strength of the beverages.
The response? The companies are still testing out different metrics to understand the potency of the drinks.
This, according to Cramer, is one key that all of the companies will have to work out before introducing beverages to the market.