Brazil's richest man, Lemann invests $23 million in cannabis startup

For the past 7 years, according to Forbes, Jorge Paulo Lemann has been Brazil's wealthiest billionaire. Last year, he mentioned feeling like a "dinosaur" in the face of disruptive new businesses. "We had a board meeting at a restaurant where there were 200 craft beer brands, none of them ours". But at 79 years old, the country's richest man continues to diversify his businesses. On Wednesday (24), Kraft Heinz, a food giant with Lemann among its investors, announced its entry into the cannabis market.

Its venture capital arm, Evolv Ventures, led a $23 million funding round in the cannabis technology startup Flowhub. Based in Denver (USA), the company operates in the marijuana retail software area and provides compliance data, point of sale, inventory tracking, and business intelligence to dispensaries through a digital platform.

Evolv Ventures was created by Kraft Heinz last year to invest in emerging technology companies that are "transforming the food industry", and this investment is Evolv's third, the first in the cannabis technology sector.

The main goal of this venture arm is precisely to support Kraft Heinz, owner of brands like Heinz ketchup and Philadelphia cream cheese, in keeping up with food and beverage industry trends. CBD-infused products are gaining consumer interest due to perceived functional benefits.

Kyle Sherman, founder and CEO of Flowhub, expressed gratitude: "With this investment, we will continue to automate supply chain, retail, and cannabis reporting processes and launch technological solutions that are not only shaping the cannabis retail business but also driving the future of legalization and destigmatization".

AB InBev and Canadian marijuana producer join forces to launch cannabis-based beverage

This is Lemann's second foray into the cannabis sector. The billionaire, whose main segment is beverages, has virtually no room left to grow with Anheuser-Busch InBev, the world leader in beer manufacturing. Therefore, he decided to invest in the growing legalized marijuana market. 

Last December, AB InBev, owner of the Brazilian Ambev, announced a research partnership with Tilray, a Canadian cannabis producer. The two companies are conducting research on non-alcoholic beverages infused with cannabis. Each will invest up to $50 million in the partnership, which is limited to Canada.