cbd drink company stocks

December 15, 2021 By admin Off

Canaccord’s Bobby Burleson and Jonathan DeCourcey claimed that the drinks could be poised to outpace general demand for marijuana products by over two times, capturing 20% of the market for cannabis edibles by 2022. Those prospects, they pointed out, are alerting major drink manufacturers. (See also: 5 Marijuana Stock Picks: Cowen .)

“According to a Grand View Research forecast, the global energy drinks market is projected to be almost $85 billion by the year 2025, with non-alcoholic beverage sales expected to account for a significant portion of the market,” Ram Mukunda, IGC’s CEO, said in the release. “This represents a unique opportunity for the development and commercialization of a CBD-infused, sugar free energy beverage.”

Shares in the Bethesda, Maryland-based company, which specializes in infrastructure commodities and the development and commercialization of cannabis-based therapies to treat Alzheimer’s, pain, nausea, eating disorders, several end points of Parkinson’s and epilepsy in humans, dogs, and cats, have been on a tear lately, surging 39.84% on Monday and a further 35.26% ahead of Tuesday’s trading session.

IGC’s strong start to the week came despite the company issuing no fresh news updates. That suggests one thing: that investors continue to show their appreciation for IGC’s recent entrance into the cannabis-infused energy drink market. (See also: 5 Most Popular Ways to Consume Cannabis )

Investors can’t get enough of India Globalization Capital Inc. (IGC).

CBD-Infused Drinks Potential Alerting Major Consumer Brands.

Cannabis investor Jason Spatafora did not seem convinced, recommending Pyxus International Inc. (PYX) instead.

Judging by the subsequent reaction, investors agree that the company’s CBD, or cannabidiol, a non-psychoactive compound in marijuana that's believed to have therapeutic benefits, drinks venture could be a game changer. That the beverage is still in the development phase, does not appear to have bothered them one bit.

In a press release issued last week, IGC announced that it had entered into a distribution and partnership agreement for several products including a sugar free, energy drink called "Nitro G." Since that news broke on September 25, the shares have risen almost 300%.

Research analysts have played a key role in building up excitement about cannabis-infused drinks. In a recently published note, reported on by Business Insider, Canaccord Genuity predicted that marijuana beverages could become a $600 million market in the U.S. in the next four years.

“Interest has spiked from the beer industry on mounting evidence of a substitution relationship between cannabis and alcohol, while large soda companies increasingly view CBD as a natural fit within their strategically important wellness offerings,” the analysts wrote in the note.

“Alkaline88, the best water. the best way to help you take better care of yourself. It’s not just good to you, this is good for you.”

Its popular Alkaline88 products are already very well-known among consumers and have been associated with many health benefits already.

With APP’s formulations, A88 Infused is expected to be the first national U.S. beverage company – and the first NASDAQ-listed company – to bring true water-soluble, full-spectrum features of bioactive natural hemp extract molecules to U.S. consumers.

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But Alkaline Water Company has already secured a deal that brings a patent-pending process that can bring true water-soluble, full-spectrum features of bioactive natural hemp extract molecules to U.S. consumers.

The Company is positioning itself to ramp up supply as it is working on a one million square foot greenhouse, which in December Hexo said was both on schedule and on budget. The increase in capacity will be vital in growing more cannabis and freeing up resources to focus on many different marijuana products.

Visit us at https://mugglehead.com daily for all things cannabis-related.

Struggling with problems relating to acidity in his stomach, Irvin has turned to Alkaline88 to help get some relief, which he says has been a life-saver – adding credibility to Alkaline’s products as The Company has already made a clear connection in the minds of consumers with being healthy and good for their bodies.

We have lots in store for 2019 so be sure to check us out!

“The Alkaline Water Company Inc. has entered into a Binding Letter of Agreement with Infusion Biosciences, Inc., that provides a non-exclusive license to utilize its proprietary Aqueous Phytorecovery Process (“APP”) technology.

Tilray Inc (NASDAQ:TLRY)

For one, the Alkaline Water Company is truly a beverage company. Its core product, Alkaline88® is now sold in over 47,500 retail locations nationwide in all 50 states, with a distribution that spans more than 150,000 stores. These include 9 of the top 10 largest retailers in the entire U.S. and two of the largest retailers in the entire world.

Via Alkaline Water Company:

Over the past year, the Alkaline Water Company has been working on the development of a CBD-infused hemp water and it could be one of the first national U.S. beverage companies to bring true water-soluble, full-spectrum features of bioactive natural hemp extract molecules to U.S. consumers.

Vancouver, British Columbia, CANADA.

How can we talk about the beverage space without talking about one of the more advanced beverage companies entering the CBD beverage space. While a smaller company overall, Alkaline has some big advantages over the other companies on this list.

One of the biggest stocks in the space, Tilray is looking to make a big splash in the beverages market. In December, we learned that it would be working with Anheuser-Busch InBev SA in what’s being called a ” research partnership .” While it’s not exactly a firm partnership or even a guarantee that the two will sell or co-brand products, it’s a joint project that will benefit both companies and bring them closer to deciding on a strategy for the beverages market.

After securing a deal with Molson Coors Canada (TSX:TPX-B.TO) (NYSE:TAP) last year to produce beverages, Hexo is looking to be one of the big players in the industry as well. Truss is the name of the joint venture the two companies have formed that will be developing the beverages. While we’ve learned little of their progress, Molson CEO Mark Hunter said at last quarter’s earnings that:

While these drinks are selling a bit more in Canada this year (they’re up to $24 million almost halfway through the year), they’re nonetheless falling woefully short of the $529 million analysts were forecasting just a couple of years ago.

Big Beer’s decision to invest in marijuana stocks broke down barriers and opened the floodgates for other types of big consumer product companies like Kraft Heinz and Nestle to begin experimenting with edibles and other combinations. The latter companies might end up being the big winners if the consumer preference surveys hold out.

Image source: Getty Images.

Anheuser-Busch InBev (NYSE:BUD) partnered with Tilray (NASDAQ:TLRY) in 2018, Molson Coors (NYSE:TAP) did so with HEXO (NASDAQ:HEXO) that same year, and Boston Beer just last month announced it was establishing a cannabis research-and-development hub in Canada.

Unfortunately for the beer and pot companies, the “rocket fuel” they expected has failed to deliver, and the CBD drink rocket is still on the launchpad.

Snacks over drinks.

Anheuser-Busch and Tilray, meanwhile, formed Fluent Beverages, and in late 2019 launched their first CBD drink, Everie. It uses what it calls CBD isolate, a purified form of CBD that offers 98% pure CBD with less than 0.05mg of THC (tetrahydrocannabinol, the psychoactive compound in marijuana responsible for the “high”) per serving.

The beverage giants put a lot of money into marijuana, but the bet is not paying off, and CBD drinks could cause further expensive writedowns in the future.

Beverages infused with cannabidiol (CBD, the non-psychoactive one of the two most common chemical compounds found in marijuana) sound like they should be a hit. Easily ingestible, cannabis drinks provide a convenient way for consumers to enjoy both a nonalcoholic beverage and a bit of CBD.

Still, the Agri-food Analytics Lab of Dalhousie University in Nova Scotia surveyed 1,000 Canadians and found they weren’t all that excited about CBD drinks anyway. Only 4% preferred drinking their CBD compared to ingesting it by other means, such as with edibles, suggesting CBD drinks might be a segment that never really takes off.

Image source: Getty Images.

Constellation continues to take losses on its investment in Canopy Growth as the pot company has laid off workers, shut down two greenhouses, and announced an $800 million writedown. Tobacco giant Altria (NYSE:MO) , which invested $1.8 billion in Cronos Group (NASDAQ:CRON) , also is losing money on its investment and says it is monitoring the situation.

The companies have faced a few hurdles, such as CBD drinks not being allowed to be sold at restaurants and bars in Canada (in the U.S., it’s hit or miss), but only at licensed stores, which makes it more difficult to reach consumers.

They’ve all bought into the idea that cannabis-infused beverages are needed to staunch hemorrhaging beer sales to the tune of millions, if not billions, of dollars. Maybe they should first have asked consumers if that’s what they wanted.

Similarly, Molson and HEXO formed a joint venture called Truss Beverage and are mounting a big marketing campaign in Canada to inform consumers they can buy CBD-infused beverages at the same place they purchase their marijuana. And in 2018, Heineken ‘s (OTC:HEINY) Lagunitas launched a THC-infused sparkling water in the U.S. that was inspired by India pale ales, or IPAs.

I’ll drink to that.

Because legal marijuana is reportedly cutting into beer sales, brewers have openly embraced cannabis companies. Constellation Brands (NYSE:STZ) was the first major alcoholic beverage company to break the taboo of investing in a pot stock, buying a $4 billion stake in Canadian producer Canopy Growth (NASDAQ:CGC) in 2017. And it wasn’t long before FOMO, or the fear of missing out, gripped other brewers, too.

Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time. Having made the streets safe for Truth, Justice, and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. His coverage reflects his passion for motorcycles, booze, and guns (though not enjoyed all at the same time. usually), but his writing also covers the broader sectors of consumer goods, technology, and industrials. So follow along as he tries to break down complex topics to make them more understandable and useful to the average investor. Have a story idea? Contact Rich here. I may not be able to respond to every suggestion, but I do read them all! Think an article needs a correction? Reach Rich here.

It’s not much better in the U.S., where Seattle-based cannabis analytics firm Headset found sales of adult-use and medical edibles were taking off — up 60% in 2020 from the prior year. Meanwhile, in one market (Michigan), beverages barely even register on the radar with a 0.2% market share (edibles had over 16%).

Constellation and Canopy Growth launched their Quatreau brand of CBD-infused sparkling water in Canada last year and made it available in the U.S. earlier this year. Using its patented Distilled Cannabis process, the lineup contains 20 milligrams of U.S.-grown, hemp-based CBD per serving and comes in four flavors.

Bloomberg reports CBD drinks are proving to be a tough sell. Hifyre, a Canadian cannabis data analytics firm, found that CBD beverages in Canada generated only $28 million in sales in 2020, or slightly more than 1% of the total $2.6 billion in legal marijuana revenue.

CBD drinks themselves, however, might just go flat, rather than offsetting the decline in beer consumption as the brewers had hoped.

An expensive experiment.