Entourage Health Corp. (formerly WeedMD Inc.)
(
TSX-V:ENTG)
(OTCQX:WDDMF)
(FSE:4WE) (“
Entourage” or the
“
Company”), a Canadian producer and distributor of
award-winning cannabis products and brands, announced today that
its subsidiary and licence holder WeedMD RX Inc. has signed
agreements with BBCCC, Inc., a subsidiary of the The Boston Beer
Company, Inc. (
NYSE: SAM)
(‘
BBC’), and Ontario-based Peak Processing
Solutions (
‘Peak’), a subsidiary of Althea Group
Holdings Ltd
(ASX:AGH), to launch a new portfolio
of non-alcoholic cannabis-infused beverages in Canada, with
production commencing in Q4, 2021.
Under the terms of the five-year development,
supply, manufacturing, sales and marketing agreements, BBC and Peak
will develop the beverages with Entourage’s cannabinoid-rich input
biomass processed at Peak’s Windsor, Ontario facility. Entourage
will be the exclusive distributor of the cannabis-infused beverages
in Canada leveraging Entourage’s expansive local sales and
marketing network.
“The cannabis market is constantly evolving and
with a growing base of consumers seeking consumption alternatives,
we’re excited to partner with Boston Beer and Peak to elevate our
offerings with Canadian-made, cannabis-infused beverages developed
by one of North America’s most iconic craft beer brands,” said
George Scorsis, Interim CEO and Executive Chair of Entourage. “We
are proud to expand into another consumer vertical with
award-winning partners of well-known products that will focus on
all segments including the emerging self-care market. Our
collective industry expertise coupled with extensive cannabis
research and advanced branding strategies will lay the foundation
for new product collaborations and further market expansion
opportunities at scale. Our strong industry presence, sales force
and reputation for consistently delivering award-winning brands in
Canada makes this an ideal collaboration.”
"Since the early days of medical access,
Entourage has cultivated accessible, quality-produced cannabis that
is considered a benchmark in a regulated market – and they truly
exemplify what we look for in our suppliers,” said Paul Weaver,
Head of Cannabis at BBCCC Inc. “This partnership is further
strengthened by Peak Processing Solutions, with the talent and
systems in place to ensure every drink is prepared with the highest
care and excellence. We are excited to work with Entourage and Peak
to bring best-in-class beverages to Canadian consumers.”
Peak Founder and President, Gregg Battersby
added: “The team at Peak are delighted to partner with two industry
leaders in Entourage Health and The Boston Beer Company to develop
what promises to be an exciting range of cannabis-infused
beverages. This collaboration is further validation of Peak’s
significant and unique capabilities in the Cannabis 2.0 space, and
the latest in a growing list of strategic and innovative
partnerships.”
Cannabis Beverage Market
The Cannabis 2.0 market represents a strategic
market opportunity given that products within the category yield a
substantial price premium in the Canadian adult-use market compared
to dried flower and cannabis oils (Reference: Nurturing New Growth;
Canada Gets Ready for Cannabis 2.0, Deloitte). Cannabis beverages
are also appealing to new-to-cannabis consumers as an alternative
to traditional alcohol beverages, many of whom are also using the
products for self-care or wellness reasons.
According to Deloitte’s recently issued Cannabis
Report, “cannabis non-combustibles and health-and-wellness products
now represent the industry’s greatest long-term growth potential.”
(Reference: Deloitte 2021 Cannabis Consumer Report). As more
cannabis-infused products become available via mainstream consumer
goods, greater appeal is expected from a larger base of consumers
with varied cannabis-intake preferences.
The beverage market has already seen significant
transformation over recent years through innovation and e-commerce
growth. A recent report by Million Insights estimates the cannabis
beverage market will grow at a CAGR of 17.8 per cent from 2019 to
2025 to reach US$2.8 billion. (1) The report found this growth is
being driven by a range of factors, including the rise of the
health and wellness movement and the preference for cannabis
beverages among millennials.
Transaction Summary & Strategic
Benefits
Under the terms of the supply and manufacturing
agreement, Entourage will supply, on an exclusive basis, all
cannabis input materials required by Peak to manufacture
BBC-branded, non-alcoholic cannabis-infused beverages.
BBC and Entourage also entered into a sales and
marketing agreement under which Entourage will license certain
newly-developed brands from BBC and leverage its national sales
force and sales licences to market, distribute and sell the
products in Canada with the support of BBC’s deep brand-building
expertise.
Strategic Benefits:
- Branded
Craft Beverage Expertise: With its extensive experience,
top-tier status and global success in launching craft beers,
ciders, hard iced teas and hard seltzers, Boston Beer recently
created a Canadian subsidiary, BBCCC, Inc. to focus on formulating
non-alcoholic cannabis beverages in Canada. BBCCC Inc. is entering
this key market while continuing to gauge the regulatory
environment in the U.S. for future expansion opportunities. With
innovation at its core, Entourage looks to expand its consumer
offerings and diversify into new markets with new innovative,
third-party-branded products.
-
Robust Ontario-based Operations: Peak has one of
the first large-scale independent processing facilities of its
kind, specialising in the manufacturing and distribution of
cannabis-infused beverages, concentrates, topicals and other
Cannabis 2.0 products. Peak and Entourage have a long history of
working together in developing hydrocarbon extract of freshly
harvested and frozen cannabis biomass to produce live resin
formulations of renowned Entourage cultivar, Pedro’s Sweet Sativa.
This partnership represents a natural progression and evolution of
Peak and Entourage’s relationship and is a testament to the success
of this association.
-
Strengthened Distribution Capabilities: Entourage
will leverage its expansive and efficient cultivation and
distribution network to manage production, market and sell the new
cannabis beverage products. The Company has a robust and
established infrastructure with distribution reach to approximately
95% of the Canadian cannabis retail market. Additionally, Entourage
is continuously and successfully meeting emerging industry demand
with its ever-expanding medical cannabis portfolio and rapidly
growing retail footprint. The Company is strategically ready to
test the entry of cannabis-infused beverages in the self-care and
medical markets.
Visit Entourage Health’s newly launched website
here. To access our corporate video, visit us here and to access
our latest investor presentation and corporate deck here.
About Entourage Health
Corp.
Entourage Health Corp. (formerly WeedMD Inc.) is
the publicly traded parent company of WeedMD RX Inc. a licence
holder producing and distributing cannabis products for both the
medical and adult-use markets. The Company owns and operates a
158-acre state-of-the-art greenhouse, outdoor and processing
facility located in Strathroy, ON as well as a fully-licensed
26,000 sq. ft. Aylmer, ON processing facility, specializing in
cannabis extraction. With the addition of Starseed Medicinal, a
medical-centric brand, Entourage has expanded its multi-channeled
distribution strategy. Starseed’s industry-first, exclusive
partnership with LiUNA, the largest construction union in Canada,
along with employers and union groups complements Entourage’s
direct sales to medical patients. In July 2021, Entourage signed a
definitive agreement to acquire craft cultivator CannTx Life
Sciences Inc. which operates out of its state-of-the-art
micropropagation and specialty extraction facility in Guelph,
Ontario. Upon the expected closing in late summer 2021, craft brand
Royal City Cannabis will be added to Entourage’s elite product
portfolio. The Company maintains strategic relationships in the
seniors’ market and supply agreements with Shoppers Drug Mart as
well as eight provincial distribution agencies where adult-use
brands Color Cannabis and Saturday Cannabis are sold. Entourage is
also the exclusive Canadian producer and distributor of
award-winning U.S.-based wellness brand Mary’s Medicinals sold in
both medical and adult-use channels.
About the Boston Beer
Company
The Boston Beer Company, Inc. (NYSE: SAM) began
in 1984 brewing Samuel Adams beer and the Samuel Adams brand is
currently recognized as one of the largest and most respected craft
beer brands. Our portfolio of brands also includes Truly Hard
Seltzer, Twisted Tea, Angry Orchard Hard Cider, and Dogfish Head
Brewery as well as other craft beer brands such as Angel City
Brewery and Coney Island Brewing. Boston Beer formed BBCCC, Inc. in
Toronto, ON in 2021 to as a separate subsidiary to explore the
non-alcoholic cannabis beverage space. To learn more, please visit
www.bostonbeer.com
About Althea Group Holdings
Althea Group Holdings Ltd (ASX:AGH) is a global leader in the
manufacturing, sales and distribution of cannabis-based medicines
and recreational cannabis products. AGH services these sectors via
two distinct business units. Althea, the company’s pharmaceutical
business, offers a comprehensive range of cannabis-based medicines
which are made available to patients via prescription. Peak
Processing Solutions, AGH’s recreational cannabis business,
produces legal cannabis products purchased by adult consumers in
retail stores. To learn more about Althea, please visit:
www.althea.life. For more information on Peak, please visit
www.peakprocessing.com
For more information, please visit us at
www.entouragehealthcorp.com
Follow Entourage and its brands on
LinkedIn
Twitter: Entourage,
Color Cannabis, Saturday
Cannabis &
Starseed
Instagram:
Entourage, Color
Cannabis, Saturday
Cannabis &
Starseed
For further information, please
contact:
For Investor Enquiries:Valter
PintoManaging Director KCSA Strategic
Communications1-212-896-1254entourage@kcsa.com
For Media Enquiries:Marianella
delaBarreraSVP, Communications & Corporate
Affairs416-897-6644marianella@weedmd.com
Forward Looking Information
This press release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation which are
based upon Entourage's current internal expectations, estimates,
projections, assumptions and beliefs and views of future events.
Forward-looking information can be identified by the use of
forward-looking terminology such as "expect", "likely", "may",
"will", "should", "intend", "anticipate", "potential", "proposed",
"estimate" and other similar words, including negative and
grammatical variations thereof, or statements that certain events
or conditions "may", "would" or "will" happen, or by discussions of
strategy. Forward-looking information in this press release
includes, but is not limited to, information in respect of the
manufacture and distribution of cannabis-infused beverages pursuant
to the development, supply, manufacturing, sales and marketing
agreements entered into by the Company and the prospects
thereof.
The forward-looking information in this news
release is based upon the expectations, estimates, projections,
assumptions and views of future events which management believes to
be reasonable in the circumstances. Forward-looking information
includes estimates, plans, expectations, opinions, forecasts,
projections, targets, guidance or other statements that are not
statements of fact. Forward-looking information necessarily involve
known and unknown risks, including, without limitation, risks
associated with general economic conditions; adverse industry
events; loss of markets; future legislative and regulatory
developments; inability to access sufficient capital from internal
and external sources, and/or inability to access sufficient capital
on favourable terms; the cannabis industry
in Canada generally; the ability of Entourage to
implement its business strategies; the COVID-19 pandemic;
competition; crop failure; and other risks.
Any forward-looking information speaks only as
of the date on which it is made, and, except as required by law,
Entourage does not undertake any obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise. New factors emerge from
time to time, and it is not possible for Entourage to predict all
such factors. When considering this forward-looking information,
readers should keep in mind the risk factors and other cautionary
statements in Entourage’s disclosure documents filed with the
applicable Canadian securities regulatory authorities on SEDAR at
www.sedar.com. The risk factors and other factors noted in the
disclosure documents could cause actual events or results to differ
materially from those described in any forward-looking
information.
Third Party Information This
press release includes market and industry data that has been
obtained from third party sources, including industry publications.
The Company believes that the industry data is accurate and that
its estimates and assumptions are reasonable, but there is no
assurance as to the accuracy or completeness of this data. Third
party sources generally state that the information contained
therein has been obtained from sources believed to be reliable, but
there is no assurance as to the accuracy or completeness of
included information. Although the data is believed to be reliable,
the Company has not independently verified any of the data from
third party sources referred to in this press release or
ascertained the underlying economic assumptions relied upon by such
sources
NEITHER THE TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS RELEASE
___________
1
https://www.prnewswire.com/news-releases/cannabis-beverages-market-size-to-expand-at-17-8-cagr-by-2025--owing-to-increase-in-sale-of-cannabis-infused-drinks--million-insights-301247061.html
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