There’s a thirst for cannabis-infused beverages and BevCanna Enterprises Inc () (OTCMKTS:BVNNF) is taking them on in a big way.
The Vancouver-headquartered firm creates, manufactures and distributes cannabinoid-infused beverages and consumer products for in-house brands, as well as white-label clients.
That encompasses everything from product conceptualization and branding, all the way through to production, packaging and logistics.
The firm utilizes patented technology to produce premium tasting, water-soluble cannabinoid infusions using THC and CBD from both cannabis and hemp. BevCanna has an exclusive supply partnership with () (OTCMKTS:OILFF) for water-soluble cannabinoids in Canada.
The beverage market is an area the firm is well acquainted with, as it has already built a number of global brands, with past successes amongst the team including Mike’s Hard Lemonade, Vega, and Trace Beverages.
BevCanna's existing infrastructure gives the firm a head start – not to mention its prime location in British Columbia's fertile Okanagan Valley –which includes a 100-acre outdoor cultivation site and a 40,000 sq/ft manufacturing facility in Osoyoos, as well as a spring water aquifer. The firm holds a standard processing license and hemp cultivation license from Health Canada.
The company has multiple revenue streams, including house brands, white label bottling, and is actively pursuing joint ventures, licensing and acquisitions of technology and brands.
In the US, where it is first focusing on California, BevCanna is commercializing a proprietary technology for water-soluble powder through its own brands, with the aim of becoming an ingredient supplier to other B2B partners. The firm says after it gains a foothold in the US and Canadian markets, it has ambitions to expand globally.
BevCanna has had a fast-paced summer as it rolls out products to the US and gears up for sales in Canada following the expected legalization of edibles and infused products in October 2019.
The firm listed on the Canadian Securities Exchange in July, debuting its first brand, Anarchist Mountain Beverages shortly after. The name was inspired by the site of BevCanna’s bottling operations, on Anarchist Mountain. Products will include a range of THC-dominant ready-to-drink beverages, shots, and powdered drink mixes, with a flavour nod to the plants found throughout the Pacific Northwest.
Another one of the company's cannabis-infused beverage products is Lev, a CBD-dominant mixture of fruit flavours, which is blended together with alkaline spring water.
In August, the firm expanded its product line of cannabis-infused beverages with the launch of a new label, Grüv Beverages. The new line encompasses a range of CBD-infused iced tea beverages, developed in response to BevCanna’s recently completed North American-wide consumer study, which focused on product and consumption preferences within the cannabis-infused beverage market.
According to BevCanna's chief commercialization officer Emma Andrews, iced tea was among the top five performing concepts, among 25 product ideas tested.
“We are also choosing to launch this brand with a balanced THC and CBD profile (1:1 ratio), in order to provide consumers with a mild, yet effective cannabis experience,” Andrews said.
READ: BevCanna Enterprises launches Grüv Beverages, a range of CBD-infused iced tea drinks
The firm's North American-wide consumer study, which was released in July, is important to note, as it showed more than 70% of Canadian consumers would “definitely” or “probably” purchase CBD-infused beverages.
An independent research group, which conducted the survey on behalf of BevCanna, polled over 2,000 adults of legal drinking age in the US and Canada on their interest and preferences in current and potential cannabis products.
The study also found that consumers across all regions see CBD-infused beverages as contributing to a healthy lifestyle. The survey also noted that while Canadian consumers would also consider THC beverages as a means to relax and unwind, they tend to associate THC with consumption occasions such as hanging out with friends or social gatherings.
READ: BevCanna study finds more than 70% of Canadian consumers would buy CBD-infused beverages
As it looks ahead, the company's business objectives for the rest of 2019 include finishing testing its water-soluble, powder-based beverages in the US as well as entering into multiple letters of intent with Canadian licensed producers for white-label manufacturing of cannabis-infused beverages.
BevCanna's opportunity looks bright, across both Canada and the US. The firm plans to use its foundation in California as a base for expansion in the US, once cannabis is federally regulated. In Canada, as infused products are expected to become legal in October, with products on shelves expected around December, BevCanna has a notable head-start. Analysts have predicted a lack of products on shelves, giving the firm an opportunity to capture brand recognition right away.
BevCanna's chief commercialization officer Emma Andrews said: "The vision is to create, manufacture and distribute infused-beverage products for the emerging cannabis scene in Canada and globally as well".
"We have a capacity of 72 million bottles annually out of this facility and a spring water aquifer on site as well, which positions the types of products that we create very differentiated for the market. It's a pristine water source, a great infusion medium for cannabinoid-infused beverages," Andrews added.
Contact Katie Lewis at [email protected]