Share prices for marijuana producer Canopy Growth were up 6.4 percent on the stock market Wednesday, while Cronos Group, a medical marijuana company, jumped 5.25 percent. Marijuana-focused exchange-traded fund ETFMG Alternative Harvest ticked up 2.35 percent, Bloomberg reported last week.
According to the Canadian television station, several people familiar with the situation who wish to remain anonymous have claimed that the UK alcoholic beverage company has met with several high-ranking representatives in the past month about a possible alliance involving the production of cannabis-infused beverages. While one executive told BNN that contracts could take months, another said that a closed deal is on the horizon.
"We never comment on speculation," a Diageo spokeswoman said in an email to Bloomberg last week. "As we've said before, we are monitoring this space closely."
In June, Canadian Prime Minister Justin Trudeau announced that marijuana will become legal nationwide beginning October 17.
The move will make Canada the second country in the world to legalize cannabis nationwide for medical and recreational use. Medical marijuana has been legal in Canada since 2001.
Each Canadian province will publish its own regulations regarding cannabis sales. The new legislation will allow Canadian adults to legally possess and use up to 30 grams of dried cannabis in public spaces. In addition, the law will allow Canadian adults to grow up to four cannabis plants at home.
This month, Constellation Brands Inc., an international producer and marketer of beer, wine and alcoholic spirits, also announced that it is planning to increase its investment into Canopy Growth, a medical marijuana company based in Smiths Falls, Ontario, by a cool $3.8 billion.
In addition, Molson Coors Brewing Company is undertaking a joint venture with Hydropothecary Corp., a medical marijuana company, to produce cannabis-infused drinks in Canada.
Aurora, the second-largest cannabis company by market value after Canopy, has also claimed that it will enter the infused-beverage market.
"There is so much happening in this area right now and we think it has incredible potential," Aurora spokesperson Heather MacGregor said in an email to Bloomberg.
"As a rule, we do not discuss business development initiatives until they are finalized, however we have a responsibility to our shareholders to give proper consideration to all relevant opportunities that are presented."