Marijuana Beverages

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Marijuana Beverages - US

The US marijuana beverage industry is poised for exponential growth in the coming years. This can be attributed primarily to the increasing legalization of marijuana across many states. In 2016, the marijuana edibles industry (including beverages) was already worth $7.2 billion, and is expected to have an annual growth rate of 25%. Specifically for marijuana beverages, growth is being driven by the need for variety, novelty and preference for healthy choices among its consumers. Notable players in the US marijuana beverage industry are the following: The Tinley Beverage Company Inc., Rocky Mountain High Brands, Inc., and the High Performance Beverage Co.

GROWTH DRIVERS FOR THE INDUSTRY

Legalization of marijuana across the US has resulted in the surge in the demand for marijuana and its related products like beverages and other edibles. The marijuana edibles industry, under which beverage products are included, was already valued at $7.2 billion in 2016 and expected to further gain at an annual rate of 25%.

MARIJUANA BEVERAGE INDUSTRY TRENDS

Focusing on marijuana beverages, this sector is expected to experience a growth surge and is even seen to challenge the $211 billion alcohol industry. Around 7.1% of revenues from the existing retail beer industry is forecasted to transfer to the marijuana beverage industry.

Key drivers for the increase in demand includes variety, novelty, and tendency to choose healthier options. There were no significant trends involving new packaging or new markets as the industry has just been recently regulated.
As marijuana is still a fairly new legal ingredient, the substance can still be considered a novelty that consumers want to be included in their diet. Different strains of marijuana also have different flavors, allowing for the novelty of personalizing the tastes of the consumers' beverages.

As consumers naturally crave more variety, it is a welcome option for them to have marijuana added into their everyday beverages like coffee, wine, beer, sodas, energy drinks, and even in their hot cocoa.
Marijuana is also touted for its positive health impact, based on various studies. For the increasing number of health-conscious consumers, marijuana-infused beverages can be seen as a healthier option to alcoholic drinks, with more or less the same effect, but with added health benefits. Some research also confirms that products with CBD have been discovered to be have a high nutritional value. These marijuana-infused products can also have several types of health-essential amino acids.

MARIJUANA BEVERAGE INDUSTRY KEY PLAYERS

Based on the recommendation of a marijuana industry observer, three players came up when analyzing which companies are predicted to have significant portfolio gains. As most companies are private and revenues are not readily available, we must rely on industry watchers to provide recommendations on top players in this area.
The three key players that are expected to profit from the beverage industry growth are: The Tinley Beverage Company Inc., Rocky Mountain High Brands, Inc., and High Performance Beverage Co.
The Tinley Beverage Company Inc. provides non-psychoactive hemp-infused beverages and supplements under its Hemplify Vitality Elixirs product line.
Rocky Mountain High Brands, Inc. offers a hemp-infused beverage line that produces energy drinks, lemonade, and other beverages. Rocky Mountains energy drink is being promoted as a healthier option compared to commonly known energy drinks like Red Bull. The companys energy drink contains hemp, ginseng, guarana, and other natural ingredients
High Performance Beverage Co. manufactures and sells performance sports drinks. The company also plans to launch a new line of marijuana-infused sports drinks.

CONCLUSION

The US marijuana beverage industry is set for significant growth in the coming years due to the recent legalization of the industry. Main driver for growth are the consumers natural thirst for novelty, variety, and the rising inclination towards healthier choices. The three key players in the marijuana beverage industry based on expert stock recommendations are: The Tinley Beverage Company Inc., Rocky Mountain High Brands, Inc., and the High-Performance Beverage Co.
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Marijuana Beverages - Cananda

In July 2018, Canada is expected to legalize recreational marijuana along with the cannabinoid-infused foods and beverages. The cannabis infused-beverage industry is expected to boom into the mainstream market. There is an anticipated demand for cannabis-infused beer, wines and other alcoholic and non-alcoholic beverages. Companies like Puration and Constellation Brands Inc are expected to dominate the industry.

key players

Puration has emerged as a key player in the upcoming marijuana beverage industry. Puration has valuable experience in cannabis extractions and making cannabis infused drinks. The company have plans to release a cannabis-infused beverage on the day recreational marijuana is legalized in July 2018. Puration already produce a cannabis infused non-psychoactive sports water, EVERx, which has achieved great success. This drink currently on the market it the only one of its kind in Canada.

Puration is currently one of two cannabis sector companies that are regulated by ACI Conglomerated. It is necessary to mention that Puation's sister company, North American Cannabis Holdings Inc, is in negotiations to secure a Canadian dispensary. In case of success, Puration will have an enhanced opportunity to manufacture and distribute cannabis infused drinks in Canada, securing a large part of the industry.

Constellation Brands Inc, also has plans to manufacture a range of cannabis-infused drinks. This strategic move is possible after the company secured an investment of 9.9% (C$245 million) in Canopy Growth Corporation, Canada's largest cannabis producer. Constellation Brands Inc is a producer of various alcoholic beverages, so the opportunity for alcoholic cannabis-infused drinks are endless. However, the plan is to produce both non-alcoholic and alcoholic drinks. Constellation Brands CEO Rob Sands "hopes to get ahead of the game" in the development of their new range of cannabis-infused beverages.

Another company that is a key player in the industry and could enter the Canadian market is U.S-based company Phivida. Phivida already produce many popular non-alcoholic cannabis-infused beverages in the U.S. They are ready for strategic distribution partnerships in Canada in order to grow their brand and secure a piece of the industry in Canada.

There is huge potential for cannabis-infused alcoholic drinks, such as beers, wines and even spirits through companies like Constellation Brands, along with potential for wellness-based and non-alcoholic infused beverages through companies like Puration and Phivida. These three key players are defined both by their popularity and already present dominating position in the cannabis infused beverage industry in Canada. As the legalization of cannabis infused beverages will only be set for July 2018, other industry trends for Canada are difficult to map.

News of the deal between Constellation Brands and Canopy has fueled growth in the industry. Other cannabis producers and distributors (such as Aurora Cannabis and Liberty Health Sciences) as well have potential for further exceptional growth as the industry takes off. Deloitte expects the market for legal marijuana to grow to $8 billion.

trends and drivers

In the opinion of Adam Sites, (CEO of Mirth Creations) the industry is set to grow due to the social stigma that is attributed with smoking cannabis being significantly less compared to the consumption of cannabis-infused drinks. He suggests placing cannabis in a drink makes the experience more socially comfortable and acceptable.
Sites also suggests that cannabis-infused drinks will offer consumers a personalized experience.

In terms of drink trends, a journalist Sarah Parniak, tested some cannabis-infused beverages at a few places around Canada. The first brand she mentions is a nonalcoholic beverage called 'Saint Claire', from EP Infusions in Montreal. It sells for $30 for 750ml. Second is a sweet iced tea offered by The Baker's Shop in Toronto, and can be either non-psychoactive or psychoactive. She states how The Baker's Shop hopes to soon release a range of seasonal hot cannabis-infused drinks. The price here is $10 per packet.

Thirdly, she tried cannabis kombucha at a pop-up stall at the Toronto Green Market. Other various cannabis-infused drinks included a hot tea and lemonade.

conclusion

The cannabis-infused beverage industry in Canada is set for success with the national legalization of cannabinoid-infused foods and beverages in July 2018. Key players emerging in this industry are Constellation Brands, Puration and Phivida. Trends of this industry including the marketing and production of a variety both alcoholic and non-alcoholic cannabis infused hot and cold beverages. These beverages may be either non-psychoactive or psychoactive. However, some other industry trends are difficult to predict ahead of the official launch of such products. Growth drivers of this industry included the legalization of cannabinoid-infused foods and beverages in Canada and the decreased stigma and increased social acceptance surrounding cannabis infused beverages.
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