Waterloo Brewing Investment Highlights slide image

Waterloo Brewing Investment Highlights

2 Well-Positioned for North American Non-Alcoholic, CIB Opportunity CIBS have the potential to fundamentally change the consumer beverage landscape; they could form a multi-billion dollar market if consumers treat them as substitutes for alcoholic beverages (US$ in billions) Cannabis Activity in 2017 and 2018 There has been a recent flurry of deals in the cannabis sector - companies of varying sizes are acquiring capabilities to develop products across the health, vaping, edible and infused-beverage sectors October: Constellation announced C$245mm investment in Canopy Growth for a 9.9% stake June: U.S. FDA approved GW Pharma's Epidolex, the first drug that contains CBD Novartis July: Heineken-owned Lagunitas launched a THC-infused sparkling water (Hi-Fi Hops) August: Constellation announced an additional C$5bn investment in Canopy Growth for a 38% stake Heineken Constellation Brands Anheuser-Busch InBev 2017 $42bn Constellation Brands 2018 Imperial Brands $213bn $35bn $57bn $4bn GW Pharma March: Novartis formed a strategic alliance with Tilray to develop new cannabis-based medications June: Imperial Brands invested in Oxford Cannabinoid Technologies, a biopharmaceutical company $14b Molson Coors Pharma Tobacco Beverages Sources: Factset, Company press releases Note: Bubble size and dollar amount represent approximate market capitalization (US$) as of announcement date 11 $40bn $102bn $119bn Altria December: Altria announced C$2.4bn investment in Cronos Group for a 45% stake August: Molson Coors announced a JV with Hydropothecary Corp to develop CIBS in Canada December: ABInBev formed a partnership with Tilray to research non-alcoholic, cannabis-infused beverages. Each partner will initially invest $50mm US in the effort WATERLOO0 -BREWING-
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