Home » alcohol sin stocks » As Predicted: Cannabis Stocks Are Working With Alcohol Distributors

We predicted this awhile ago so it’s not a surprise to see news articles like this:

Alcohol distributor Southern Glazer is working with pot stock Aphria to distribute its pot (source: Financial Post)

Southern Glazer is a privately held company based in the US that works actively in Canada to distribute alcohol. It was announced recently that they started working with pot stock Aphria Inc (APH) to distribute their pot.

This makes sense: alcohol is a highly regulated industry so companies need to jump through hoops to distribute it. Similarly, weed is highly regulated and is likely to be distributed and sold in a similar way to alcohol and consumed by a similar audience. It’s a natural fit and benefits everyone—from the distributor to the consumer.

How should investors play this? Well, Southern Glazer is a large distributor but they are privately owned. So not much can be done there. However here are a few ways to use this information:

  • Watch for Southern Glazer to become publicly traded. They might not but it’s possible that they could.
  • Consider investing in pot stocks, especially those that have a good product but don’t have distribution yet. They are likely trying to get distribution deals right now, which will help to bump up their stock price.
  • Look for distributors like Southern Glazer that are publicly traded and see if they are likely going to move to pot distribution too. (Once they see what it does for Southern Glazer, it’s possible that they will try something similar).
  • Look for outliers in the industry of distribution start-ups that are trying new things (think: “the uber of cannabis distribution” which is likely a sentence that will be said in fundraising meetings for months to come).

 

DISCLAIMER

Nothing on this site is a recommendation because, hey, I can't read your mind and I don't know what you have in your portfolio, and I'm not a licensed financial advisor. So never EVER trade without doing your due diligence. If you want more information about this fascinating topic, please check out the Sin Stocks Disclaimer page which basically says the same thing but more emphatically.