One of the most discussed subjects before cannabis was legalized in Canada was whether alcohol companies would collaborate with licensed cannabis producers. In October 2017, global alcohol conglomerate Constellation Brands made the first move by making its investment in Canopy Growth.
Now another major alcohol company, Johnson Brothers invests in Humble & Fume (CSE: HMBL & OTCQX: HUMBF) completing a US$8 million private placement on November 15, with the goal of establishing a joint venture to distribute cannabis in the United States—initially in California. Johnson Brothers, a Top 5 leading wine, spirits, and beer distributor, is able to purchase significant Humble & Fume equity for minimal money once cannabis has been legalized in the United States.
On November 30, Humble & Fume announced the appointment of Jakob Ripshtein as Chairman of the Board, taking over from Executive Chairman Shawn Dym. Jakob was the former head of alcohol giant, Diageo Canada. Under Jakob's new leadership, the Board will be more focused on strategically key issues and encouraged to create policy coordination and strategic oversight. With that in mind, expansion into the United States is high on the list.
Jakob stated that:
“As the company expands into cannabis distribution in the U.S., we are well positioned to deliver long-term shareholder value.”
Obviously, this is where Johnson Brothers' wide range of retail connections comes in handy. Humble & Fume is anticipating the day when cannabis is legalized nationally. Cannabis can then be readily distributed throughout the domestic retail network after it becomes legally acceptable. Furthermore, because cannabis goods and alcoholic beverages may eventually be distributed together, Humble & Fume has a huge potential to grow its distribution channels quickly.
The Cannabis Normalization Drums Get Louder With Each passing day
Whether or Not SAFE Banking Is In the NDAA, The Drums Of Cannabis Legalization Are Getting Louder. If it goes through, the sector will have achieved a significant victory that makes achieving outright legalization less difficult. If not, expect Chuck Schumer to reintroduce his Cannabis Administration & Opportunity Act in 2022, which goes even further.
In the meanwhile, Humble & Fume (CSE: HMBL & OTCQX: HUMBF) will continue to operate on its current plan, waiting for regulatory roadblocks in the United States cannabis industry to be lifted. When they are, they have the ideal partner to speed up broad distribution throughout the United States, where cannabis should one day be sold on an equal footing with alcoholic beverages.