Updated Commentary: New Report Values the US Cannabis Drinks Market at $1.4 Billion by 2024
March 05 2019 - 9:00AM
OTCinsider.com News Commentary –
A recent report by Zenith Global, a leading global food and
drink consulting firm, projects that the US market for cannabis
infused drinks will grow to $1.4 Billion by 2024, an almost fifteen
times (15x) increase from 2018 sales of just $89million. A number
of companies in the public sector have been positioning themselves
to take advantage of this growing marketplace. Here are five
companies that OTCInisider thinks has the best potential to grab
significant market share in this sector.
New Age Beverage (NASDAQ:NBEV), the US based
energy and natural beverage manufacturer announced in the fall of
2018 that it was beginning to produce CBD infused beverages. At the
end of 2018, NBEV launched its Noni+Collagen product, and announced
that within its first two months of sales, generated over $4
million in revenue in its first two months in initial test markets.
The product was created by the Company's Morinda Division and
currently offers the product in 50 ml glass bottle shots,
positioned as a once-daily use, sold in three 10-packs for a 30-day
supply. In addition to this new product, NBEV has announced in
January an agreement to sell Marley branded cannabis-infused
beverages. The first product of this partnership, Marley+CBD Mellow
Mood, will initially be sold in Colorado, Oregon, Washington, and
Michigan, holds the potential to be one of the first
globally-recognized CBD-infused relaxation drinks in the U.S.
market.
Canopy Growth Corporation (NYSE:CGC) a Canadian
grower of Cannabis, announced in August of 2018 that it has
received a $4 billion investment from Constellation Brands
(NYSE:STZ), giving the Company the ammunition and support to enter
into the cannabis infused beverage space. With cannabis becoming
fully legal in Canada since the announced investment, and more US
states becoming cannabis legal, it is only a matter of time before
the Company begins producing cannabis infused beverages with and
without alcohol. And last week, the Company announced a
ground-breaking deal with Martha Stewart, who will produce
pet and retail products infused with CBD and THC under her brand
name. With an extensive distribution network, cannabis infused
beverages from CGC will be able to scale quickly, which should lead
to a significant increase in revenues for the company.
Alkaline Water Company (NASDAQ:WTER) one
largest US alkaline water companies, announced that it had launched
the first phase of its “A88 Infused Beverage Division” product
line, which will encompass hemp infused alkaline water products.
Alkaline88, WTER’s primary alkaline water brand, is already sold in
over 47,500 retail locations nationwide in all 50 states, including
9 of the top 10 largest retailers in the United States. The A88
Infused Beverage products, which will include “sparkling flavored
hemp infused alkaline water, hemp infused flavored Alkaline88, and
vitamin infused Alkaline88 are expected to become available for
commercial sale in WTER’s extensive distribution network in the
coming weeks. With the massive national footprint from their core
Alkaline88 brand, the WTER could surely be a first-mover in the
hemp infused beverage race.
American Premium Water Corporation (OTC: HIPH)
the US based manufacturer and distributer of LALPINA CBD, the first
hydro-nano CBD beverage on the market. HIPH announced back in
October of 2018 that it had acquired proprietary formulation
utilizing hydro-nano technology that increases the bio-availability
of CBD and THC in their infused beverages. HIPH has been able to
effectively market their products at high visibility events, which
they did recently at the Superbowl, sponsoring events during the
leadup to the big game. The marketing has paid off, as HIPH has
been steadily adding distribution points over the past few months.
Interestingly enough, HIPH’s CEO met with Zenith Global, the
authors of the report, in London two weeks ago, and Zenith
prophetically replied that “it’s a great product”. It’s very
possible the combination of HIPH’s marketing abilities and Zenith’s
knowledge of the industry could propel HIPH to capture significant
market share with their proprietary product. The Company recently
received a valuation of $0.40, which compared to current trading
shows there is a lot of opportunity for growth for this
Company.
Puration Inc (OTC: PURA), is a US based
manufacturer and distributer of cannabis infused water. PURA
announced that it had generated over $1million in sales for 2018.
PURA was one of the first companies to enter the infused beverage
space, as it launched its EverX CBD Sports Water, back in 2017
during the Arnold Sports Festival. PURA is once again returning to
the festival, as its EVERx CBD Sports Water is being presented at
the Arnold Sports Festival for a third consecutive year. At this
year’s event, EVERx will be debuting a new formula and packaging
right in the center of the Expo, as a major event sponsor of the
Jan Tana's Body Painting Revolution stage. PURA has entered into a
number of other partnerships with food and beverage establishments,
including Illegal Burger. The Company has potential to grow revenue
by leveraging their first to market advantage and relative
expertise of the space.
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