Will Cannabis-Infused Beverage Stocks Live Up to the Hype or Fizzle Out? -- The Motley Fool

Tuesday, Jan 8, 2019

If any investors had been wondering how long it would take for the marijuana industry to shed its moniker as "taboo" and become a legitimate business model, wonder no longer.

Last year was a game changer in many ways for the cannabis industry. Canada became the first industrialized country to legalize adult-use weed, the U.S. Food and Drug Administration approved its first cannabis-derived drug, and President Trump signed the Farm Bill into law, legalizing hemp and hemp-based cannabidiol (CBD). Any doubts about marijuana being a valid business model were tossed out the window.

Of course, it was a generally miserable year for pot stocks, with 10 somewhat prominent companies losing at least half of their value. Perhaps the one bright spot was the surge witnessed in marijuana stocks that partook in the cannabis-infused beverage craze.

Image source: Getty Images.

As the name suggests, a cannabis-infused beverage aims to incorporate CBD and/or tetrahydrocannabinol (THC) into an alcoholic or nonalcoholic beverage. CBD is the nonpsychoactive cannabinoid best known for its perceived medical benefits, whereas THC is the cannabinoid that gets a user high. Alternative consumption options that don't involve smoking cannabis are gaining steam, and there's a realistic chance that infused beverages could draw in consumers who've never tried a cannabis product before.