Mugglehead says cannabis beverages are going to be the talk of
2019. With Canada set to legalize edibles and the U.S. recently
passing the Farm Bill, both sides of the border expect to see a
flurry of activity surrounding beverages this year.
Here are four companies to watch as the beverage market starts
to take off:
Canopy Growth Corp (TSX:WEED)
(NYSE:CGC)
Since securing its deal with Constellation Brands,
Inc. (NYSE:STZ), all eyes have been on Canopy Growth
and what it plans to do in the beverages space. Thus far, the
companies have been tight-lipped around any potential beverages.
However, given that Constellation invested in Canopy Growth back in
late 2017, it would be shocking if the two hadn't made progress on
cannabis-infused beverages since then.
But Canopy Growth has been making moves to suggest it is getting
ready to ramp up for something big. Last month, it secured
a hemp license with the State of New York and announced
it was going to setup operations in the State as well.
Recently, it also announced it would be injecting an additional
CAD $30 million into Canopy Rivers
Inc. (TSXV:RIV), its investing arm. A few weeks prior
to that, Canopy Rivers had made an equity investment in a company
called "Herbert." Herbert is involved in the edibles and cannabis
beverages market and could open up many opportunities for the
cannabis giant.
Canopy Rivers believes that Herbert, equipped with existing
R&D, marketing and manufacturing expertise, has the ability to
enter this market quickly and achieve success in creating widely
appealing THC-infused beverages and edibles under this new
standalone brand
- Narbe Alexandrian, President of Canopy Rivers
What role all these moves will have in The Company's overall
beverage strategy is unclear, but there's no denying Canopy Growth
is aiming to be a big player in this segment of the market.
Alkaline Water Company Inc
(TSX-V:WTER) (NASDAQ:WTER)
The Alkaline Water Company is new to the cannabis scene but it's
making a name for itself in a hurry. Without the aid of a partner
from the cannabis industry, it's going at the market alone*. And
given its success with its popular Alkaline88 beverages, it may
feel like it may not need a partner.
*it's worth noting that it's Chairman, Aaron Keay, has
significant experience in the marijuana space.
Late last year, we learned Alkaline was going to work on
developing CBD-based beverages. And earlier this month, we've
discovered that it has already been making big strides since then.
Its new Infused Beverages Division already has products that are
ready for sale. The Company showcased them at a couple of big trade
shows this month in Nashville and Chicago.
But the hemp products are still yet to come. From Alkaline's
press release:
The Company expects roll-outs of additional products to continue
over the next several weeks, that will include sparkling flavored
hemp infused alkaline water in a 12-oz sleeve can, hemp infused
flavored Alkaline88® original, and vitamin infused Alkaline88®
original.
By the sounds of it, we could see Alkaline's hemp products as
early as March or April.
The big question mark is in which states Alkaline's products
will be sold in. Individual States have to outline a plan for
regulating hemp and to have it approved by the U.S. Department of
Agriculture (USDA) before the products can actually be sold.
What this means is that Alkaline's hemp products might not be
widely available anytime soon (through no fault of its own). But
the good news is that The Company is well ahead of the game -
especially when it's core product already has distribution into
over 47,500 retail locations, including 9 of the top 10 largest
retailers in the United States and two of the largest retailers in
the entire world.
New Age Beverages Corp
(NASDAQ:NBEV)
Another company focused on healthy beverages is New Age
Beverages Corp. It has a vast array of products in many different
flavors that aim to give consumers health benefits and improve
their overall wellness. New Age is also banking on the popularity
of Bob Marley to help grow its products. The
Company's Marley+CBD products will first begin rolling
out in Washington, Oregon, Colorado and Michigan, although a date
has not been set as to when that will happen.
New Age Beverages has been receiving significant demand for its
products thus far:
It makes my job a lot easier when I have retailers and
distributors reaching out to me asking for specific products. From
the moment the CBD movement began, I've been receiving calls
nonstop asking when we'd be going to market with a
Marley+CBD product. Retailers and distributors realize that it
will be a long road for smaller CBD brands to gain traction and
brand equity. Under the Marley brand platform, we are able to
leverage a massive global brand with ties to healthy cannabis use,
to ultimately grow a beverage brand beyond anything we have seen
to-date
- Michael Cunningham, Senior VP of Sales
New Age's products have proven to be very popular with
consumers, and it's not just beverages that are doing well. One of
its skincare products, Noni+Collagen, which is in its Morinda
division, generated $4 million in test markets and has become so
popular that The Company is taking it global.
In hundreds of testimonials and reviews from customers all over
the world, we heard how consumers love the product and see tangible
results in their skin and overall appearance. We had no choice but
to expand it globally given the demand
- Shon Whitney, VP of Sales and Marketing for Morinda
This is significant for investors because it demonstrates New
Age's ability to create products that consumers want and demand,
regardless of segment. It's one thing to create a product that has
health benefits. It's another to generate such
significant demand. New Age's repeated success with finding
formulas that work with consumers ensures that it's going to be
holding its own when it comes to market share in the cannabis
beverages segment.
Tilray Inc.
(NASDAQ:TLRY)
A bit of a latecomer to the beverages game, but Tilray could
prove to be a formidable opponent. The 'research partnership' that
The Company announced with Anheuser-Busch InBev
NV (NYSE:BUD) back in December was the first big
sign that it was serious about getting into beverages. However,
since then it's gone on to make even bigger moves. The Company
announced earlier this month that it was bringing on executives
into its leadership team that have strong backgrounds working for
big beverage companies such
as Starbucks, Nestle, Coca-Cola and Diageo.
We are pleased to have these experienced leaders join our team
as we continue to disrupt the global pharmaceutical, alcohol, CPG
and functional food and beverage industries
- Brendan Kennedy, CEO of Tilray
With a strong leadership team with a wealth of beverage-related
experience, Tilray is going to have access to key individuals and
resources in the industry to help further its strategy. The Company
looks to have big plans for both the beverage market and for
expansion around the globe.
While it may be the furthest behind of the companies on this
list when it comes to beverages, it shouldn't be counted out by any
stretch.
The original post can be found here:
https://mugglehead.com/cannabis-beverages-are-coming-soon-which-of-these-4-brands-will-be-on-store-shelves-first/
Directors of Mugglehead own shares of Alkaline Water (WTER) at
the time of this writing.
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