CBD Drink Market Unlocking Significant Growth Potential for Investors

By 2025, the CBD beverage market could reach $1.018 billion, according to Research and Markets. In fact, the firm notes, “Market growth is largely attributed to the increasing legalization of cannabis for medical and recreational purposes. As a result, many alcohol giants are investing a significant amount in the growing trend for cannabis-infused drinks. CBD beverages have witnessed a worldwide adoption due to their benefits. Some of the factors responsible for shaping the CBD beverage industry's future are changing customer tastes, product innovations, awareness, and acclaim for these beverages.”

To date, the market is already witnessing incredible growth. Look at BevCanna Enterprises Inc. (CSE:BEV)(OTCQB:BVNFF) for example. The company just announced that it has closed its previously announced acquisition of Naturo Group Investments Inc. The combination of these two emerging industry leaders creates a diversified health and wellness; beverage and natural products company, with $55M+ in assets on the balance sheet, and a global multi-channel sales and distribution network positioned for growth.

“The combination of these two Canadian beverage industry leaders unlocks significant potential for growth,” said Marcello Leone, CEO of BevCanna. “The synergies between BevCanna and Naturo are exceptionally strong and each brings complementary strengths to the table. BevCanna is a leader in the cannabis-infused beverage and nutraceutical industry while Naturo’s innovative plant-based mineral beverage and supplement brand, TRACE, and significant manufacturing infrastructure and international distribution networks, form the foundation of an industry-leading health and wellness company.”

BevCanna will now offer one of the most unique and diverse portfolios of beverage and natural health products within both the cannabis and plant-based industries. BevCanna is now uniquely positioned to become the only fully licensed, in-house and white-label beverage manufacturing company that produces and distributes both conventional and cannabis-based CPG products. The acquisition provides access to global, multi-channel distribution networks that the Company will leverage for continued growth.

“We’re very excited to realize our transformation into a diversified health and wellness company,” said John Campbell, CSO of BevCanna. “Consumers continue to flock to health and wellness focused products, and our ability to now reach an entirely new market of customers in this area, on top of the growing demand for cannabis products, is a combination very few companies are able to offer.”

Key benefits that BevCanna will realize from the acquisition include:

- Direct ownership of a proprietary on-site natural alkaline spring water aquifer, valued at $18M. As water resources become increasingly scarce, BevCanna expects that the proprietary resource will contribute to a strengthened balance sheet and to BevCanna’s unique positioning within the growing plant-based and cannabis industries.

- An established sales and distribution network of over 3,000 retail stores, via Naturo’s TRACE mineral beverage brand. TRACE is sold across the country through Canadian retailers, with select international agreements and partnerships under review. Along with its nationally distributed alkaline and sparkling waters, TRACE is expanding its product selection to nutraceuticals and is incorporating additional nutraceuticals and herbal remedies, including cannabinoids, adaptogens, and nootropics, into its products to be sold in domestic and international markets.

- TRACE’S proprietary Health Canada-approved plant-based formulation – a category that is expanding exponentially across North America and internationally.

- Naturo’s 315-acres of outdoor cultivable land and 40,000 sq. ft. high-capacity beverage facility valued at $10.4M, optimized for both traditional and cannabis-infused beverage manufacturing.

Other related developments from around the markets include:

Canopy Growth Corporation (NASDAQ:CGC)(TSX:WEED) announced its financial results for the third quarter fiscal 2021 ended December 31, 2020.  “We delivered another quarter of record net revenue, with growth across all our businesses, led by improved commercial and supply chain execution,” said David Klein, CEO.  “We are building a track record of winning in our core markets, while also accelerating our U.S. growth strategy with the momentum building behind the promising cannabis reform in the U.S.”

Tilray Inc. (NASDAQ:TLRY), a global pioneer in cannabis research, cultivation, production and distribution, today reported financial results for the full fiscal year and fourth quarter ended December 31, 2020. Brendan Kennedy, Tilray’s Chief Executive Officer, stated, “Over the course of 2020, and despite COVID-19 related challenges, we transformed and strengthened Tilray, delivered solid full year results, significantly reduced net loss, and achieved our stated goal of delivering break even or positive Adjusted EBITDA in Q4 2020. We did so by generating meaningful revenue growth across our core businesses, particularly international medical and Canadian adult-use in Q4, and reducing costs by $57 million on an annualized basis compared to Q4 of 2019. As a result, we now operate with a more focused, efficient and competitive cost structure. We also strengthened our balance sheet and positioned Tilray for growth and success in the future in combination with Aphria. These results required hard work and dedication and I sincerely appreciate everything the Tilray team has done to transform our business during 2020. We now look forward to the beginning of the next chapter in our corporate journey.”

Neptune Wellness Solutions Inc. (NASDAQ:NEPT)(TSX:NEPT), a diversified and fully integrated health and wellness company focused on plant-based, sustainable and purpose- driven lifestyle brands, announced its financial and operating results for the three- month and nine-month periods ending December 31, 2020. During the third fiscal quarter, Neptune substantially completed its strategic transition from extraction of hemp and cannabis to the production and sale of consumer-packaged goods and branded products. Neptune believes the shift to consumer-packaged goods and branded products will ultimately result in higher margins and lower risk and will enable the company to generate positive adjusted EBITDA sooner than in its prior B2B model. In addition, the transition has allowed Neptune to prepare logistics to build scale and situated the Company for accelerated growth.

Aphria Inc. (NASDAQ:APHA)(TSX:APHA), a leading global cannabis-lifestyle consumer packaged goods company inspiring and empowering the worldwide community to live their best life, announced Denise Faltischek, Aphria’s Chief Strategy Officer, will also assume the role of Managing Director of Aphria Germany, effective January 23, 2021, reporting to Irwin D. Simon, Aphria’s Chairman and Chief Executive Officer.  Ms. Faltischek joined Aphria in September 2019 with extensive consumer-packaged goods experience and expertise leading over 50 acquisitions. She leads Aphria’s global business strategy and oversees Aphria’s medical and international business segments as well as quality function.

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for BevCanna Enterprises Inc. by a third party. We own ZERO shares of BevCanna Enterprises Inc. Please click here for full disclaimer.

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