Arizona Beverage announced that they reached a licensing deal with Dixie Brands, which tends to make and sells cannabis-infused drinks, chocolates, gummies, and topical creams. By means of the partnership, Dixie, which operates in six U.S. states, will manufacture and distribute items branded with Arizona’s name. The items will be sold by means of licensed dispensaries.
The deal also offers Arizona the correct to obtain a stake of up to $10 million in the cannabis business.
Arizona Beverage’s namesake iced teas are sold at comfort shops and supermarkets about the nation, like 7/11s, Walmarts, and Walgreens, which may possibly indicate cannabis items are edging closer to the mainstream. The agreement is one particular of the initial examples of a key customer business getting into the cannabis marketplace.
“The cannabis marketplace is an essential emerging category, and we’ve maintained our independence as a private company to be positioned to lead and seize generation-defining possibilities specifically like this one particular,” stated Don Vultaggio, chairman of Arizona Beverages in a press release. “The cannabis category is an best space to bring the flavor and enjoyable of AriZona into new and fascinating items.”
Other beverage brands have also been dipping their toes into the cannabis sector. In 2017, Constellation Brands announced a close to 10% stake in Canopy Development Corporation. Later, they enhanced the investment by an additional $four billion. California-primarily based Lagunitas Brewing, owned by Heineken, also launched cannabis-infused sparkling water to be sold in pick California areas.
Having said that, as a private business, Arizona may well have a lot more leeway to take this step. Despite the fact that cannabis is legal for recreational use in 11 states and for healthcare use in a lot more than 30 states, it remains prohibited by federal law. This indicates it cannot be transported across state lines.