During Thursday's class, the discussion regarding regulation within the wine and cannabis space peaked my interest in understanding how mass wine producers are dealing with the growing cannabis industry. Constellation Brands invested for a 10% stake recreational pot company so it is a matter of time for the wine industry to also invest. After some research, I found the product called No Label which is a line of pot-wine that leverages the robust and daring flavors of California wine to inject the effects of her 20 different strains of cannabis. It even has endorsements from Melissa Etheridge!
According to the company who owns No Label (Greenway), California wineries have been producing pot-wine for decades but this is the first time that a product has launched so openly (especially with a celebrity endorsement). Working with over 6 grape varietals and 20 cannabis strains, the company has a number of promising directions to go. Unfortunately, their legal team is quite busy, especially as they are currently battling the courts with allowing intra-state transport of the product.
I am interested in seeing how this product grows now that cannabis has been legalized in California and if it expands, will larger wine companies feel the need to invest or even acquire their operations? As a larger wine company, I would feel apprehensive about the cannabis industry and would try to follow suit with beer competitors who are already investing in relevant cannabis start-ups.
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