Food In Canada

Sproutly and Moosehead enter agreement to develop, produce, and market non-alcoholic cannabis-infused beverages in Canada

By Food in Canada staff   

Business Operations Products Research & Development Beverages

Sproutly Canada, Inc., and OCC Holdings Ltd., an affiliate of Moosehead Breweries Limited have entered into a definitive agreement to form an exclusive joint venture  to develop, produce, and market non‐alcoholic cannabis-infused beverages in Canada using Sproutly’s proprietary, naturally produced water soluble cannabinoids known as “Infuz2O”. Both companies will bring their respective strengths to the joint venture to develop a line of great tasting cannabis beverages featuring a rapid onset and offset effect unique to the category.

Some highlights of the Joint Venture according to Sproutly and OCC Holdings Ltd.:

  • Partnership with the Oldest and Largest Independent Brewery in Canada
    • Over 152 years of brewing experience through six generations of family ownership
    • More than 140 million cans/bottles of beer sold annually throughout Canada, the United States and in 15 other countries around the world
    • Oland family’s proven ability in building, marketing and selling industry leading beers such as Moosehead Lager, Moosehead Radler, Alpine, and Hop City Barking Squirrel


  • Competitive Advantage Driven by Infuz2O
    • The JV beverages can deliver the cannabis effect as early as five minutes and last up to 90 minutes, providing an edible cannabis experience similar to traditional flower cannabis without the need to inhale smoke
    • Ability to address the industry challenges of overconsumption of oil-based edibles and beverages
    • Capability to produce a clear cannabis beverage that is much easier and faster to formulate than its competitors who will be using emulsifiers, encapsulation or chemical modification techniques
    • Ability to deliver functional beverages that address a “need state” by producing cannabis strain specific experiences
    • Natural Infuz2O process allows for a premium consumption experience and taste profile


  • JV Well Positioned to Enter Cannabis Beverages Upon Legalization
    • Moosehead’s beverage experience and R&D formulation capabilities will ensure that the cannabis beverages produced will be premium in quality and have a great taste profile
    • Moosehead’s established operational infrastructure will allow the Joint Venture to fast track its go-to-market strategy
    • Sproutly’s cultivation facility and processing license will advance the formulation work that has been completed to date as well as production scale up


  • Alignment of Interests
    • The Joint Venture is structured as a 50/50 equity ownership
    • Matthew Oland, one of Moosehead’s senior executives and Oland Family member, to lead the Joint Venture as Chief Executive Officer
    • Moosehead to provide infrastructure support such as R&D, operations, procurement,   finance, and distribution
    • Sproutly to provide proprietary custom compositions using Infuz2O for cannabis beverages in Canada
    • JV will have exclusive rights to utilize Infuz2O for cannabis beverages for a period of five years with a possible two-year extension
    • Ability for the JV to enter the European market once recreational cannabis use is legalized


Andrew Oland, Chief Executive Officer of Moosehead said in a release “with the anticipated legalization of edibles in Canada later this year, Moosehead has made the strategic decision to enter the cannabis beverage market” and that the company is “uniquely positioned” to be a leader in the cannabis beverage category.

Terms of the Joint Venture

The Joint Venture will be structured as a standalone company with its own board of directors and management team. Sproutly and Moosehead will each hold a 50 per cent interest in the JV and have the right to nominate three directors. Moosehead shall appoint the Chief Executive Officer and Sproutly shall appoint the Chairperson of the board of directors of the JV.

Sproutly will provide Infuz20 exclusively to the Joint Venture in Canada for the purpose of producing cannabis beverages (excluding hemp) for a period of five years, subject to a potential extension based on the Joint Venture reaching certain revenue targets.

The formation of the Joint Venture is subject to the satisfaction of certain conditions, including the execution and delivery of various transaction agreements, governance documents and supply agreements. The parties expect to form the Joint Venture on or before May 31, 2019.



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