The cannabis beverage market is an emerging vertical that has been generating significant traction. The reason for the uptick in interest is simple— these products can be purchased from Canadian Licensed Producers (LPs) following a change in regulation in late 2019.
Although the Canadian cannabis beverage vertical has proven to be successful, the big money that stands to be generated will be by the states that have legalized recreational cannabis in the U.S. While the development in Canada in late 2019 is significant, the U.S. cannabis beverage market has been booming for several years and experts expect this trend to become more significant in the years to come.
During the last year, spectators have seen big alcohol brands enter the legal cannabis industry via strategic investments or partnerships. From Corona to Coors, big alcohol brands have become levered to the cannabis beverage market. But until there is change in the way cannabis is viewed at the federal level, these large alcohol brands will only sell cannabidiol (CBD) beverages in the U.S.
Cannabis legalization has a real shot of eventually coming to the U.S. On the cannabis beverage side of the business, BevCanna Enterprises Inc. (CSE:BEV) (OTC: BVNNF) (FSE: 7BC) is an opportunity to be aware of.
Last week, BevCanna entered into a definitive agreement to acquire Naturo Group Investments Inc., an established beverage manufacturer and distributor for both in-house and white label brands. The acquisition builds on a multi-year exclusive partnership between the companies.
From operational synergies to cost savings, to a more diverse product portfolio and access to distribution (Naturo has over 3,000 points of distribution for their products), the acquisition may prove to be immediately accretive to BevCanna. The strength of the relationship between the two companies will play