Arizona Tea Maker Just Entered the CBD Market this Week
CBD has gone mainstream.
In fact, as CBD products make their way onto the shelves of Vitamin Shoppe, Kroger, CVS and Walgreens, analysts believe the trend could be a significant catalyst.
The best part -- consumer spending on cannabis-based food and drink products could reach $4.1 billion from just $1 billion in 2017, according to analysts at Arcview Market Research. Most interesting, according to a Rabobank report, CBD has been entering food and beverage products – beer, coffee, jelly beans – at an “astounding pace.”
For example, Jones Soda just jumped on the bandwagon after Heavenly Rx – a hemp portfolio company of cannabis investment firm, SOL Global Investments – invested $9 million to buy 15 million shares. That investment now brings SOL Investments’ stake to 25%. Jones is using that money to develop beverages featuring CBD.
The deal will also give Heavenly Rx two seats on Jones Soda’s board.
Arizona Tea Just Entered the Market
Privately held Arizona Beverage just announced that it reached a licensing deal with Dixie Brands, which makes and sells drinks, chocolates, gummies and topical creams that are laced with cannabis. Through the partnership, Dixie, which operates in six U.S. states, will manufacture and distribute products branded with Arizona’s name. The deal also gives Arizona the right to buy a stake of up to $10 million in the cannabis company.
“The cannabis market is an important emerging category, and we’ve maintained our independence as a private business to be positioned to lead and seize generation-defining opportunities exactly like this one,” said Don Vultaggio, chairman of Arizona Beverages. “The cannabis category is an ideal space to bring the flavor and fun of AriZona into new and exciting products.”
Arizona Tea and Jones Soda aren’t the only ones
Constellation Brands partnered with Canopy Growth Corporation. New Age Beverages is producing and distributing a new line of Marley+ CBD drinks, , including Mellow Mood, a relaxation tea with CBD. Anheuser-Busch InBev announced a partnership with Tilray to research non-alcoholic beverages infused with THC and CBD. Heineken subsidiary Lagunitas even just partnered with cannabis company AbsoluteXtracts.
Better, we’re beginning to see signs of consolidation in this industry.
For example, Tilray Inc. just acquired Smith & Sinclair to create a line of edibles and will distribute product throughout North America.
This may just be the start to something much, much bigger.