Forecasted to be worth a potential $22 billion by 2022 according to
the Brightfield Group, the global hemp CBD market presents one
of the most exciting growth opportunities of the
2000s. Although much of this market’s growth is expected to
come from the United States—a country in which marijuana is still
federally illegal—companies across North America remain undeterred
in their mission to establish a footprint in the U.S. hemp-infused
beverage market.
In this report, we take a closer look at some of the companies
preparing to dominate what is becoming the world’s largest market
for hemp-infused beverages.
The Alkaline Water
Company
The Alkaline Water Company (NASDAQ and TSXV: WTER), a leading
producer of premium bottled alkaline drinking water sold under the
brand name Alkaline88®, continues to expand its national
retail footprint as regulations around hemp-infused products
are ironed out.
Not only did the company expand its distribution into 30 more
Whole Foods stores (resulting in a total of 107 across the United
States), but it formed an agreement with Jetro Cash and Carry—one
of the United States’ leading wholesale food and beverage
suppliers. The agreement will provide over 5,000 independent
retailers (ie. restaurants, nonprofit organizations) in Southern
California with access to the company’s Alkaline88® 1-liter, 700ml,
and 500ml products.
The Alkaline Water Company’s goal seems to be clear: be
available in as many locations as possible, whether it’s a
potential customer’s favorite diner or their local supermarket.
It’s a strategy that could prove invaluable in the launch of the
company’s forthcoming hemp-infused alkaline product line—especially
considering the importance of brand awareness in the cannabis
industry.
With distribution into tens of thousands of retail locations
across the United States already, including Walmart and Krogers,
The Alkaline Water Company could become one of the first companies
in the world to bring naturally flavoured, hemp-infused alkaline
water to the U.S. market.
Canopy
Growth
Despite the fact that little is known about the Company’s
upcoming CBD-infused beverages, Canopy Growth
Corp. (NYSE: CGC) (TSX: WEED), a world leading diversified
cannabis and hemp company, represents one of the shining stars in
the hemp-infused beverage space. Not only did it receive a $4
billion investment from Corona brewer Constellation
Brands (NYSE: STZ and
STZ.B) back in November 2018—the marijuana industry’s largest
investment to date—the company also announced plans to invest
between $100 and $150 million to develop a Hemp Industrial Park in
the state of New York.
The importance of Canopy Growth’s investment into a U.S. Hemp
Industrial Park—or more specifically, the U.S. hemp supply chain
itself—is not to be understated.
In a February 2018 interview with
lehighvalleylive.com, Canopy Growth’s future strategic
advisor Geoff Whaling was quoted saying,“We’re going to take
it up a notch and look at studying the [hemp] supply chain . . .
Collectively we’re going to study what is it going to take, because
there is no equipment in America to study processing
industrial hemp on a commercial level.”
It was a comment that foreshadowed what CNBC would one year
later call a “supply chain riddled with issues”.
Considering its investments in commercial hemp farming
logistics, Canopy Growth appears to have one of the strongest
foundations in the U.S. hemp-infused beverage market.
Anheuser-Busch
InBev
Back in December 2018, American
brewer Anheuser-Busch InBev (NYSE: BUD)
made headlines with the announcement of a research partnership
with Tilray Inc. (NASDAQ: TLRY), whereby the two companies
would invest up to $50 million each in the research of non-alcholic
cannabis-infused beverages.
Although the research partnership is limited to Canada, the
commercialization of its outcomes are not—at least not yet. This is
likely due to the fact that both companies recognize the immense
potential of the hemp-infused beverage market in the United
States.
And with global beer sales declining, the growth of the
hemp-infused beverage market couldn’t come at a better time for
brewers like Anheuser-Busch.
Via Forbes:
“BUD reported revenue of $14.25 billion in Q4 2018, 2.4% lower
than $14.6 billion in Q4 2017. Lower revenue was mainly due to
decreasing beer sales and a fall in market share of its flagship
brands . . .”
Through the investment of tens of millions of dollars into the
development of hemp-infused beverages with Tilray, Anheuser-Busch
is both diversifying its product portfolio and establishing itself
as an early innovator in the CBD-infused beverage market.
New Age
Beverages
With the announcement of its Marley+CBD product line back
in January 2018, New Age Beverages
Corporation (NASDAQ: NBEV) almost effortlessly
transformed itself into one of the early leaders of the CBD-infused
beverage space.
Already one of the world’s largest healthy beverage companies,
New Age Beverages maintains a diverse portfolio of healthy beverage
brands, including Marley, Xing, Búcha, and Coco Libre.
Most recently, the company announced the worldwide
expansion of its Noni + Collagen product, a collagen
supplement drink based in Tahitian Noni fruit juice. Considering
the growing popularity of cannabis-infused topicals for skin care
already, it’s not difficult to imagine New Age Beverages spinning
off a CBD + Collagen product in the future.
Phivida
Phivida Holdings Inc. (CSE VIDA and OTCQX:
PHVAF), a functional food and beverage company that offers premium
beverages and clinical products infused with active hemp extract,
recently announced that leading supermarket chain, Safeway, would
begin selling its Oki hemp-infused beverages in over 100 stores
across Colorado.
The agreement with Safeway marks the first major U.S. retailer
to offer the Oki line of iced teas and waters, which will now come
infused with 20mg of active hemp extract. Phivida aims to be in
over 1,000 outlets in early Q2 2019.
U.S. Hemp Market Attracts
Investment
From leading cannabis companies to beer brewers, some of North
America’s biggest firms are investing in U.S. hemp assets. At the
same time, a handful of beverage companies are snapping up
valuable market share in preparation for the United States’
eventual legalization of hemp-infused beverages. Companies that
wait on the proverbial “sidelines” to establish beverage market
share will likely pay a steep premium when the United States
finally legalizes marijuana—especially considering the retail
headstart that brands like The Alkaline Water Company will have by
that time.
The original post can be found here:
https://mugglehead.com/5-hemp-infused-beverage-companies/
Disclosure: Directors of Mugglehead own shares of the Alkaline
Water Company and other marijuana stocks not mentioned in this
release and we have been compensated by Alkaline Water Company for
news coverage.
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