A cannabis-related ETF was among leaders in the markets Monday as Canadian pot stocks rallied amid rising speculation that more alcohol companies will be partnering up with marijuana growers in response to Canada’s move toward legalization.
The ETFMG Alternative Harvest ETF (NYSEArca: MJ), first U.S.-listed ETF to target the cannabis and marijuana industry, jumped 6.2% Monday. MJ has surged 36.2% since its August 14 lows.
Leading the charge Monday, Tilray Inc. (NasdaqGS: TLRY) shares advanced 29.0%, Cronos Group (NasdaqGS: CRON) increased 24.3%, Aphria (TSE: APH) gained 13.9% and Aurora Cannabis (TSE: ACB) rose 7.1% as beer and liquor producers consider partnerships with the pot industries.
For example, Diageo Plc, the maker of Guinness beer, is holding discussions with at least three Canadian cannabis producers over a possible deal, Bloomberg reports.
Earlier in August, Constellation Brands, the maker of Corona, announced it would invest $3.8 billion in Canopy Growth Corp.
Molson Coors Brewing Co. is also starting a joint venture with Hydropothecary Corp. to make cannabis-based drinks.