CBD beverages in Canada now from the hand of Boston Beer and Peak Partners
The CBD beverages (cannabis) market is evolving in Canada, now with the alliance between Peak Partners and Boston Beer.
Peak Processing Solutions, a subsidiary of Althea Group Holdings, has signed agreements with BBCCC, Inc. a subsidiary of Boston Beer Company Inc. (NYSE: SAM), and WeedMD Rx Inc, a subsidiary of Entourage Health Corp (OTC: WDDMF), to develop, produce and distribute CBD (cannabis)-infused beverages in Canada.
Boston Beer has hired industry veteran Paul Weaver to lead a new cannabis beverage research facility in Canada’s federally regulated market. This new subsidiary will allow the company to develop and pilot unique cannabis beverages as cannabis regulations continue to evolve in the U.S. and around the world.
Under the five-year supply and manufacturing agreement, Peak will be the exclusive manufacturer of all CBD beverages produced and sold in Canada under the Boston Beer brand.
Boston Beer will contribute up to $2 million to fund capital expenditures, including the construction and supply of additional production-related laboratory facilities and equipment.
In addition, Peak will receive a minimum of $0.285 million for each year of the agreement. Entourage, meanwhile, will be responsible for the distribution and sale of CBD-infused beverages in Canada.
“Boston Beer’s reputation for quality is unrivaled, and the same sensibility that drives beer development holds true for cannabis beverages. Quality ingredients and craftsmanship make quality products, and our success starts with respect for the plant and respect for the growers,” added Paul Weaver, Director, Head of Cannabis.
“This is just the beginning of our journey and, like any craft, requires an ongoing commitment to learning. We know cannabis is new to many of our consumers and they deserve the best, so we are taking the time to get it right,” shared Weaver.
CBD beverages, a fast-growing category
According to Food in Canada, functional and plant extract-based beverages-particularly those containing cannabis- or hemp-derived ingredients such as cannabidiol (CBD)-are one of the fastest-growing segments in the beverage category.
The global CBD beverages market is forecast to triple in value by 2024, reaching $1.82 billion by the end of 2020, and $5.8 billion within four years. This growth is seen across all segments of the beverage industry, from alcoholic beverages to wellness drinks and everyday beverages such as tea and coffee. Major global brands such as AB InBev and Molson Coors have announced plans to manufacture products containing CBD, and while the global fallout from COVID-19 has slowed some aspects of product development and commercialization, there is no doubt that a huge untapped market remains.
What is CBD
CBD or cannabidiol is a cannabinoid, an organic compound found in cannabis, the main plant component in hemp strains. You probably know hemp for its organic uses ranging from personal care products to tissue creation.
CBD is considered to be the non-psychotropic cannabinoid of the future, both because of the safety of its consumption and the fact that it can be consumed in a variety of ways such as in the CBD beverages planned by Peak Partners and Boston Beer Company. Also, derived in different forms, such as raw flowers, dyes, oils, waxes and more, it has both medical and industrial properties.
Don’t drink and drive. Enjoy responsibly.
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