Tilray (NASDAQ: TLRY) and Anheuser-Busch InBev (NYSE: BUD) are on a mission to dominate the growing CBD market.

The Canadian cannabis producer and American brewing giant have announced that they will continue collaborating for the production and marketing of CBD-infused beverages.

Drinks developed under the partnership will be non-alcoholic and are expected to go on sale across Canada this December.

As an industry that is transforming into a mainstream market, Tilray and Anheuser-Busch hope to capitalize on the popularity of CBD products, all the while gaining a competitive edge over other prominent industry players.

What is CBD?

‘CBD’ is short for ‘cannabidiol’. This cannabis-derived compound is non-psychoactive and does not produce mind-altering effects quite like its cousin cannabinoid THC (tetrahydrocannabinol) does.

Rather, consumers of CBD favor this naturally-occurring chemical compound for its abundant therapeutic properties, which include – but are not limited to – anti-inflammatory, neuroprotective, analgesic and anxiolytic effects.

Demand for CBD is soaring and if Brightfield Group’s team of market analysts are correct in their predictions, the market will inflate to almost $24 billion by 2023. When compared to the $620 million valuation of the CBD market back in 2018, Brightfield’s figures indicate colossal prospective growth in this segment of the legal weed space.

Initially, the research partnership was announced by Tilray and Anheuser-Busch InBev back in December 2018. With their recent announcement of plans to commercially distribute a range of non-alcoholic CBD-infused drinks, the collaboration indicates major progress for what has been officially named the “Fluent Beverage Company.”

Just like edibles, CBD-infused drinks take longer to kick-in. The reason being that absorption takes place in the digestive tract. CBD enters the bloodstream after traveling to the liver, where the active ingredients are metabolized.

The effects of CBD tend to surface within 30 minutes to two hours after consumption. It is at this point that the cannabinoid is suffused throughout the bloodstream and brain.

About Tilray

Tilray is a Canadian pharmaceutical and cannabis company that boasts operations in Canada, Australia, Germany, Latin America, New Zealand and Portugal.

“One of the largest and most sophisticated producers of premium medical cannabis in the world,” is how Tilray describes itself on the company’s official website.

About Anheuser-Busch

Over 165 years ago, this American brewing company was founded. Headquartered in St. Louis, Missouri, the brewing company is the largest in the U.S. and produces its brew for a broad spectrum of brands, including Budweiser, Johnny Appleseed and Rolling Rock.

In 2008, Anheuser became a wholly-owned subsidiary of Anheuser-Busch InBev.

More about the Tilray and Anheuser-Busch collaboration

Jorn Socquet will lead the Fluent Beverage Company as its Chief Executive Officer. With 14 years of experience under his belt in a wide range of international roles, the AB InBev veteran has already accomplished many goals as the CEO of Fluent, including hiring a group of men industry experts from High Park and Labatt; the latter of which he served as Vice President of Operations for.

“Leading Fluent in my return to Canada has been very exciting. To be Fluent means to have mastery of a subject or skill. We have assembled a team with best-in-class expertise from the beverage and cannabis industries and together we are reaching higher for our consumers, with a shared commitment to setting

the standard for product quality and responsible marketing,” said Mr. Socquet, adding that he and his team, “look forward to building the future of CBD-infused beverages at Fluent.

The company feels that CBD-infused beverages will yield immense returns, so long as proper regulatory rules are established for the legal cannabis industry.