Infused beverage market ready to pop: Companies prepare for upcoming Canadian and US infused beverage market

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Investorideas.com, a leading investor news resource covering hemp and cannabis stocks releases a snapshot looking at the CBD and cannabis infused beverage sector and how companies are preparing to enter this new market segment.

In recent news, Food and Drug Administration Commissioner Scott Gottlieb said his agency has plans to regulate CBD edibles and will start holding public hearings on the matter as early as April.

Since the legalization of hemp and hemp-derived CBD in the Farm Bill, the CBD industry has eyed the FDA's position toward the substance, as it represents an obstacle to mass-market CBD edibles from a federal standpoint.

Having a clear set of rules could make it easier for cannabis and CBD companies to distribute their products on a larger scale and would eliminate the uncertainties that might prevent large retailers such as Walmart, Inc., from offering CBD products.

Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) has been preparing for the Canadian infused beverage market since receiving its investment from Constellation brands and is now preparing for the US, having acquired AgriNextUSA, a hemp enterprise led by CEO, Geoff Whaling which has been at the forefront of hemp advocacy and building a vibrant hemp sector in the US. The acquisition will accelerate Canopy Growth's entry into key American jurisdictions as regulations surrounding the full use of hemp as a crop begin to be implemented.

Sproutly Canada Inc. (CSE: SPR) (OTC: SRUTF), a company whose core mission is to become the leading supplier to the cannabis beverage and consumables market, discussed their beverage plans in their recent strategic update.

“Sproutly has made significant progress towards building a world-class cannabis beverage and infused product company since going public in July of last year,” said Keith Dolo, CEO and Director. “We have been successful in acquiring the exclusive rights to Infusion Biosciences’ APP technology in certain jurisdictions, which is able to produce naturally water-soluble cannabinoids that deliver the full experience of cannabis paralleling the onset and offset profiles of smoking.  From there, we have made steps to bring in the people and the resources to build a global cannabis-branded company focused on beverage and infused products,” he added.

Following the legalization of adult use recreational cannabis in Canada in 2018, cannabis edibles are expected to be legalized later in 2019.  As the Company approaches the legalization of edibles and beverages, Sproutly is developing its brand and partnership strategy with respect to APP technology.  Sproutly will look to maximize the use of the exclusive Canadian license for APP Technology that it obtained through the acquisition of Infusion Biosciences Canada Inc. APP Technology is a patent-pending process that gently recovers naturally water-soluble cannabinoids as well as natural oils; recovering between 85% - 90% of the total bioactive cannabinoids in the plant.

New Age Beverages Corporation (NASDAQ: NBEV), a Colorado and Utah-based organic and natural beverage company intending to become the world's leading healthy beverages and lifestyle company, recently announced that it will hold an investor conference call on Friday, March 29, at 8:30 AM EST to discuss the Company's full year financial results for the period ending December 31, 2018.

In the conference call, NBEV will host a Q & A session for investors, where they will have the chance to inquire about NBEV’s beverage plans for the coming months and how the FDA decisions in April may affect their beverage strategy moving forward.

HEXO Corp. (NYSE: HEXO) (TSX: HEXO), similar to Canopy, has put focus into product supply having announced that it has entered a definitive agreement with Newstrike Brands Limited, in which HEXO will acquire all the outstanding and issued common stock of Newstrike as per the Business Corporations Act of Ontario.

The licensed indoor facility of Newstrike will offer HEXO access to the different growing techniques which will help position the company for global exports as the cannabis market continues to grow.

As we prepare for the Canadian consumables market and Federal regulations surrounding the CBD infused market in the US, ensuring a proper supply chain, distribution network and having top quality product are essential to any company aiming to capitalize on this opportunity. The beverage market is set to explode, but prospective companies still have a few more months to prepare for what could be the future of the beverage industry as a whole.

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