POINT ROBERTS, Wash. and DELTA, British Columbia, Oct. 26, 2018 (GLOBE NEWSWIRE) -- Investorideas.com, a global news source covering leading sectors including marijuana and hemp stocks releases a sector snapshot with a focus on CBD and THC beverage deals brewing as the legal cannabis market in Canada just opened up new opportunities. Companies mentioned: American Premium Water Corporation (OTC: HIPH), Aurora Cannabis Inc. (TSX: ACB.TO), (NYSE: ACB), Canopy Growth Corporation (TSX: WEED.TO), The Hydropothecary Corporation (TSX: HEXO.TO).
From announced deals of ‘Constellation Brands to Invest $5 Billion CAD [$4 Billion USD] in Canopy Growth to Establish Transformative Global Position and Alignment’, to speculative deals like the Aurora Cannabis Inc. (TSX: ACB.TO) (NYSE: ACB) Coca-Cola deal, the amount of money at stake is staggering.
According to the news from Ontario based Canopy Growth Corporation (TSX: WEED.TO) (NYSE: CGC), commenting on the Constellation Brands deal, “This investment, the largest to date in the cannabis space, will provide funds which Canopy Growth will deploy to strategically build and/or acquire key assets needed to establish global scale in the nearly 30 countries pursuing a federally permissible medical cannabis program, while also rapidly laying the global foundation needed for new recreational cannabis markets. Canopy Growth's Canadian platform does not require additional cannabis cultivation assets, and management views other jurisdictions, including the United States, as strategic priorities requiring significant capital.”
In a recent Time.com article looking at the potential Coca-Cola /Aurora Cannabis Inc. (TSX: ACB.TO) (NYSE: ACB) deal, it’s noted, “Coke’s possible foray into the marijuana sector comes as beverage makers are trying to add cannabis as a trendy ingredient while their traditional businesses slow.” The article also includes a statement from Coca-Cola; ‘“We are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world,” Coca-Cola spokesman Kent Landers said in an emailed statement to Bloomberg News.’
Looking at why there is so much money being wagered on the cannabis beverage partnerships, the numbers in the industry tell the story. For example looking at the U.S. market alone, New Frontier Data says, “We forecast the legal cannabis market to grow to $25 billion by 2025 with a compound annual growth rate of 14.7%.” It’s no surprise then that the beer industry wants in when US Beer Sales Exceed $34 Billion in 2017. IRI Worldwide also notes in its report that, “Through December 31, U.S. beer volume sales decreased 0.4 percent while total beer dollar sales increased 1.2 percent.”
Looking at opportunities, both in the U.S and now in Canada, Ryan Fishoff, CEO of American Premium Water Corporation (OTC: HIPH) has ambitious plans for his cannabis beverage brand.
American Premium Water (OTC: HIPH) just announced on October 17th, “It has created a prototype tetrahydrocannabinol (THC)-infused beverage utilizing the Company’s hydro-nano technology, and that it is engaged in discussions with Canadian distributors and U.S. dispensaries. Upon official launch, American Premium expects to offer the first hydro-nano-infused THC beverage on the market.”
From the news – “With the legalization of cannabis in Canada, the Company is actively pursuing distribution agreements for both of its beverages in the Canadian market. The Company is also pursuing product distribution in U.S. states where Cannabis is legal, and is in discussions with dispensaries in California, Colorado, and Nevada.”
“Legalization in Canada and the development of our second beverage provides the opportunity for a distribution channel that not many of our competitors have. Additionally, we have a great geographic advantage in the U.S. I am based in New York City, our Chairman is located in Miami, and our headquarters are in Los Angeles – meaning we have ‘boots on the ground’ footholds in the country’s largest and most visible markets. With the addition of the THC prototype, we are going to exploit this advantage and ramp up our marketing activities in these regions. An example of something that I have in mind is doing a pop up with MedMen’s New York location. Doing a pop up with them (MedMen) would be an example of the type of marketing events that we intend to rollout in the coming months to take advantage of our geographic advantage. Over the ensuing weeks, I will share in more detail our wholesale distribution strategy for both the CBD and THC beverages,” stated Fishoff.
Following his news, one of American Premium Water distributors SinglePoint Inc., announced a successful first week of sales of the newly listed product, Lalpina CBD Water.
Also entering the THC beverage market, Lagunitas Brewing Company, a subsidiary of Heineken International, announced in late June its launch of Hi-Fi Hops. “This IPA-inspired sparkling water is made using everything Lagunitas knows about hops and is infused with THC and/or CBD (depending on your vibe). This new beverage collaboration with AbsoluteXtracts is yet another example of Lagunitas’ creativity at the intersection of culture, marijuana and craft beer, and marks the first time a major brewery has successfully and legally been represented in the THC-infused beverage space. At its core, Hi-Fi Hops is inspired by our IPA, tastes as refreshing as water (yeah, no calories or carbs!) and gives you the chill of sun-grown cannabis from AbsoluteXtracts, a CannaCraft brand.”
“Hi-Fi Hops is not the first chapter in the love affair between cannabis and Lagunitas, but it is one of the most exciting,” said Maria Stipp, CEO of Lagunitas Brewing Company. “The idea of being a part of a no-calorie beverage infused with cannabis seemed like a perfect next step in our product innovation, and a natural way to marry our past with our future.”
And the beverage deals continued to flow; On August 1st, Molson Coors Canada, the Canadian business unit of Molson Coors Brewing Company and Canadian cannabis producer, The Hydropothecary Corporation (TSX: HEXO.TO) announced that they have entered into a definitive agreement to form a joint venture to pursue opportunities to develop non-alcoholic, cannabis-infused beverages for the Canadian market following legalization.
From the Molson news - “Canada is breaking new ground in the cannabis sector and, as one of the country’s leading beverage companies, Molson Coors Canada has a unique opportunity to participate in this exciting and rapidly expanding consumer segment. This new venture is consistent with our growth strategy and our commitment to being First Choice for Consumers and Customers by ensuring that Canadians have access to high-quality products that meet their evolving drinking preferences,” said Frederic Landtmeters, President and CEO of Molson Coors Canada. “While we remain a beer business at our core, we are excited to create a separate new venture with a trusted partner that will be a market leader in offering Canadian consumers new experiences with quality, reliable and consistent non-alcoholic, cannabis-infused beverages. We look forward to partnering with HEXO, a recognized leader in the medical cannabis space in Canada that will bring robust production capacity, a track record of innovation, and, most importantly, shared values when it comes to doing business the right way and earning the trust of consumers.”
How will the cannabis beverage marriage play out in Canada? According to an article on CBC, "Canadians could soon be spending more on recreational cannabis than they do on liquor, if a report from a major bank is to be believed. Canadian Imperial Bank of Commerce calculated in a report this week that in the next two years, Canadians will consume 800,000 kilograms of cannabis, the vast majority of which will be for recreational use."
So the marriage of cannabis and beverages combined will make a significant splash in Canada and globally as it rolls out. Cheers to that!
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