New Age Beverages To Develop, Distribute Bob Marley-Branded CBD-Infused Beverages
New Age Beverages Corp (NASDAQ: NBEV), which manufactures and distributed a portfolio of healthy beverages, announced it's entering into a partnership to develop and distribute Bob Marley-branded cannabis-infused beverages.
What Happened
New Age Beverages Corp signed a partnership with Docklight Brands, which owns a portfolio of cannabis brands, including Marley Naturals, The Goodship Irisa, Dutchy and Headlight. Under the terms of the agreement, New Age Beverages will develop a line of CBD-infused beverages under the Marley+CBD brand.
Marley is a brand that was created in partnership between reggae legend Bob Marley's family and cannabis-focused private equity firm Privateer Holdings, which backs Docklight Brands.
The first markets where the products will be sold are Colorado, Oregon, Washington and Michigan.
After the initial rollout in selected markets, New Age Beverages plans to expand distribution of Marley+CBD products to additional markets. The company is also anticipating significant demand for its products in 2019.
Why It's Important
The partnership strengthens New Age Beverages Corp's position in the CBD beverages market. It also builds on top of the company's own portfolio of CBD-infused beverages unveiled last October.
Following the legalization of hemp and hemp-derived CBD with the adoption of the 2018 Farm Bill, New Age Beverages is expected to gain access to a much larger market.
The company said that since it had begun conversations with retailers and distributors in October, it had received commitments and confirmations from national accounts and distributors covering more than 125,000 outlets, including two of the largest convenience and grocery retailers in the US.
Shares of New Age Beverages trade down 5.6 percent to $6.69 Wednesday afternoon.
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