Cannabis giant, Canopy Growth Corp. (NYSE: CGC) said on Thursday morning that it plans to introduce its THC-infused beverage products to the U.S. market in the summer of 2021.

It will do this via Acreage Holdings, a U.S.-based marijuana company that agreed to be acquired by Canopy Growth following the legalization of marijuana at the federal level.

Canopy Growth already made a down payment to initiate the buyout process. Weed stocks as a whole were mixed on Thursday after the news.

Acreage Holdings expects to initially launch the cannabis-infused beverages in California and Illinois according to Canopy Growth. Cannabis is already recreationally legal at the state level in both states. The beverages will primarily be sold in Acreage’s own dispensaries but will also, “access existing distribution channels through strategic corporate relationships.”

"We are already working on our beverage production capabilities, and look forward to tapping the wealth of experience and research Canopy can offer following its successful entry in the category last year," said Bill Van Faasen, the Acreage interim CEO.

Earlier this year, Canopy Growth had problems bringing THC-infused beverages to market despite the fact that Constellation Brands (NYSE: STZ) has a sizeable stake in the cannabis company.

It decided to postpone the launch of the cannabis beverages citing, “the scaling process is not complete” as a major reason for the delay. Previously the company had expected the drinks to be ready by the end of January 2020.

Shares of Canopy Growth Growth, other cannabis companies drop

Canopy Growth's stock price fell by 1.13% to $14.05 per share on Friday despite the news. Like many other cannabis stocks, CGC has a poor composite rating (just 21) as well as an EPS rating of 20.

Other stocks in the cannabis market fluctuated but only slightly. Aphria Inc (NASDAQ: APHA) was down 0.23% to $4.41 per share and Cronos Group Inc (NASDAQ: CRON) was down just 0.6% to $5.03 per share.

Meanwhile, Aurora Cannabis Inc (NYSE: ACB) was down 1.93% to $4.58 per share and TilrayInc (NASDAQ: TLRY) plunged 2.03% to $4.82 per share.

Cannabis stock investors have in general seen the beverage market as only a small slice of the whole pie. Other forms of consumption such as dry bud and vaping products have been the preferred method by consumers who have not enjoyed the taste of marijuana beverages.

Canopy Growth has said they are working to make beverages “sessionable” meaning serving sizes will be similar to alcoholic beverages. Session beers typically have lower alcohol content making them easier to drink for longer periods of time. This is in contrast to most edible marijuana products that are small in size but pack a mean punch.

But with a $4 billion investment in the company by Constellation Brands in 2018, Canopy Growth has a much larger slice on the cannabis beverage market.

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