Zenabis Inks Deal To Foray Into Cannabis-Infused Beverage Market
Zenabis has entered into an agreement with beverage technology company Beverage Partner that will supply it with water soluble, odorless, flavorless and colorless cannabis-infused inputs.
Zenabis will use the technology to manufacture cannabis-infused beverages, both THC and CBD-infused beverages, and other cannabis-infused products. The beverage inputs supplied by Beverage Partner will be produced from cannabis supplied by Zenabis.
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Beverage Partner may also produce finished cannabis-infused beverages for Zenais by installing a production line for both beverage Inputs and finished cannabis-infused beverages, at its own cost, at Zenabis Stellarto.
Zenabis said it will produce a line of CBD-infused kombucha products together with Hillsboro Corp.
Why It's Important
The move is to capitalize on the impending legalization of cannabis-infused beverages in Canada later this year. The Canadian market for these beverages is estimated at $529 million, the company said.
"[S]o the ability to infuse cannabis in beverages; without affecting their taste, smell or appearance; strengthens Zenabis' position relative to the many other companies planning to commercialize similar products," said Andrew Grieve, CEO of Zenabis.
The company recently reported its second-quarter net revenues more than doubled, and remains on track to achieve an annual cannabis cultivation capacity of 143,200 kg under its current capital program.
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