Walmart Canada exploring possible sale of cannabis-based productsReuters
October 09. 2018 10:06PM
Walmart Inc.'s Canadian unit said on Tuesday it is exploring the possibility of selling cannabis-based products, but has no immediate plans to get into the business.
Walmart is the first major retailer to show an interest in being a part of Canada's burgeoning marijuana industry, as other big U.S. companies, mainly in the alcohol and beverage industries, begin to consider entering the market for cannabis-infused products.
Last month Coca-Cola Co. said it was closely watching the marijuana drinks market for a possible entry, while Corona beer maker Constellation Brands has invested more than $4 billion in cannabis producer Canopy Growth.
"Walmart Canada has done some preliminary fact-finding on this issue, but we do not have plans to carry CBD products at this time," Walmart spokesman Diane Medeiros told Reuters.
Cannabidiol or CBD is the non-psychoactive chemical found in marijuana and does not cause intoxication.
The news comes as Canada is on the verge of becoming the first major economy to legalize recreational marijuana on Oct. 17, and shares in cannabis producers have rallied in anticipation.
New Cannabis Ventures' global cannabis stock index has risen about 87 percent over the past year.
The legal cannabis market in Canada will target an estimated 32 million adults by 2025 and drive about C$10.4 billion in retail market sales, Roth Capital Partners analyst Scott Fortune wrote in a client note.