New Age Beverages Corp NBEV shares soared on the back of the healthy beverage maker announcing its Marley brand will expand nationally with Walmart Inc. WMT.
What To Know
The distribution expansion with Walmart is the first national account penetration for New Age Beverages. The company acquired the Marley Brand in 2017, subsequently making it one of its leading brands that include Organic Marley Mate and Marley Cold Brew.
Marley Mate is an organic mate beverage that acts like a natural energy drink. It has a low-calorie, low-sugar, and low-carbohydrate content and outsold all competitors per point of distribution in 2018, which attracted the attention of Walmart. The beverage comes in three flavors, all of which will be available in Walmart stores later this month.
New Age Beverages plans to dedicate significant marketing efforts towards the expansion of its Marley brand in 2019. Later this month, Marley Mate products will be shipped to distribution centers and within two weeks are expected to reach Walmart shelves. New Age Beverages will be running GeoFraming campaigns to attract more customers at the store level.
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Why This Is Important
The Marley brand saw an increase of demand of more than 70 percent last year. In January, New Age Beverage said it would develop a line of CBD-infused beverages under the Marley brand, Marley + CBD.
Walmart's decision to start carrying Marley Mate stores paves the way for both companies strengthening their partnership and eventually launching New Age Beverages' other products, including CBD-infused beverages.
The U.S. Food and Drug Administration is looking into products containing CBD, following its legalization in December. Canaccord Genuity projects the market for CBD beverages could reach $260 million by 2022.
Shares of New Age Beverages traded higher by 21 percent to $5.81 at time of publication.
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