Last year, statistics showed that the number of CBD infused drinks being distributed on a daily basis has increased dramatically. These CBD infused drinks have become popular because they are THC-free, which means they do not have any psychoactive effects and hence, do not cause hallucinations.
A recent report by Zenith Global, a leading global food and drink consulting firm, projects that the US market for cannabis infused drinks will grow to $1.4 Billion by 2024, an almost fifteen times (15x) increase from 2018 sales of just $89million. A number of companies in the public sector have been positioning themselves to take advantage of this growing marketplace.
Alcohol producers seem to have reached the same conclusion as Grand View. Lagunitas, which is owned by Heineken, released Hi-Fi Hops, a cannabis beverage that includes zero calories and is infused with both CBD and THC. Constellation Brands, makers of Corona and Modelo, has entered the cannabis market with a partnership to make infused beverages with Canopy Growth.
Heineken also launched a JV in California’s, the world’s biggest marijuana market. In June 2018, Heineken subsidiary Lagunitas announced a partnership with cannabis company AbsoluteXtracts to market cannabis-infused sparkling water products under the brand name Hi-Fi Hops. The products became available to consumers in July 2018. One version of Hi-Fi Hops contains 10 mg of THC, while the other contains 5 mg of THC and 5 mg of CBD.
Coca-Cola Co. said it’s eyeing to enter the CBD market, becoming the latest beverage company to tap into surging demand for marijuana products as traditional sales slow. Coca-Cola says it’s monitoring the nascent industry and is interested in drinks infused with CBD.
The CEO of Molson Coors is bullish on cannabis-infused beverages. During the company’s third-quarter earnings call, CEO Mark Hunter said the cannabis market could total $7 billion to $10 billion in Canada alone. Nonalcoholic cannabis-infused beverages could account for as much as $3 billion, or 30% of the total market.
Mark Hunter said Molson Coors, through the joint venture, was “well-placed” to take a meaningful share of that market when it opens up. “We decided as a business that we did not want to be a spectator as this new market opened up,” Hunter said. “And we clearly wanted to be a participant.”
Last week, 1st Prestige Wealth Management (OTC Pink: FPWM), a company with one foot already in the growing CBD beverage market with its Papa’s CBD infused vodka, announced it will now operate under its new name, Charlestowne Premium Beverages Inc. The rebrand follows the acquisition of the developer and wholesaler of the alcoholic and non-alcoholic beverages that share the same name.
“The decision to change the Company name comes as part of the acquisition of Charlestowne Premium brands and a desire to reinforce the symbiotic relationship we have with the brand. We are looking at a new direction as a Company and have set our sights on the alcoholic beverage market where we hope to carve a niche within the CBD infused beverage landscape. The CBD market is growing extensively in the US, so that presents a huge market opportunity,” added Martin Ustin, CEO at 1st Prestige Wealth Management. “We are entirely aligned in terms of mission and goals, so it made sense to unite the company under that name. I look forward to announcing our short-term plans in the next few weeks and keeping our investors and stakeholders up to date through our corporate communications and press releases.” Although the company name will change, the market ticker will remain the same under FPWM.
Charlestowne Premium Beverages Inc (OTC Pink: FPWM) is a company that develops, produces, markets, and distributes alcoholic beverages worldwide. The Company’s portfolio showcases spirit brands such as Papa Vodka, Crocodile Tears Vodka, Proprietor’s Reserve Whiskey, and Lord Proprietor’s Special Reserve Whiskey. Charlestowne Premium also has Wholesaler and Import permits from the Alcohol and Tobacco Tax and Trade Bureau – the governing body for spirits in the U.S. under the Department of the Treasury.