Canada based pharmaceutical company and cannabis producer Aphria Inc. (APHA) will be purchasing craft brewer SweetWater Brewing Co in a deal worth $300 million. Aphria will be using this acquisition to broaden its market share in the United States and also enter the alcoholic beverages market.
Following the acquisition, Aphria will become the first cannabis producing company to penetrate the alcoholic beverages market.
This deal places Aphria in a strategic position in the United States given that legalization of cannabis has been gaining momentum with four additional states voting to legalize cannabis on the Election Day.
Democratic candidate Joe Biden and his running mate have also promised to demystify use of marijuana with criminality if elected to the White House.
This announcement coincides with another one from Aphria’s competitor Canopy growth Corp. (WEED) which a while back announced it will be introducing its cannabis infused beverages in major markets in the United States via a joint venture with Acreage Holdings Inc. (ACRG).