Uncle Arnie's Maker Fly Brands To Enter CBD Market - Canopy Growth (NASDAQ:CGC)

Fly Brands "Fly," a company behind California-based cannabis brand Uncle Arnie's, has partnered with specialty ingredient provider Northern Diversified Solutions to expand Fly's product breadth and open new and more accessible geographic territories and distribution channels without the presence of tetrahydrocannabinol (THC)

Based in Minneapolis, the company said Friday that this collaboration combines Fly's expertise in developing consumer-centric brands with NDS's extensive knowledge of cannabinoid ingredient solutions and supply chain management.

"The multi-billion-dollar CBD beverage market represents a significant incremental opportunity for Fly to drive shareholder value while connecting with adjacent consumers who wouldn't frequent cannabis dispensaries," Fly Brands CEO Theo Terris commented. "We are thrilled to partner with a trusted and competent supplier like Northern Diversified Solutions in order to execute against this opportunity."

Growing Appeal Of Cannabis Beverages

With the CBD beverage market expected to hit over $1 billion in the coming years, many cannabis businesses either ventured into the beverages markets or reinforced their teams by hiring beverage experts.

As one of the leaders within the space, Canadian cannabis giant Canopy Growth Corporation (NYSE:CGC) (TSX:WEED) teamed up with Southern Glazer's Wine & Spirits in April to distribute its CBD-infused beverages in the U.S.

The move came on the heels of the U.S. debut of Quatreau, the company's new line of CBD-infused sparkling water, which launched in Canada in November.

In the meantime, Southern Glazer's Wine & Spirits, one of the largest alcohol distributors in the U.S. partnered with Kill Cliff in July for a deal that will bring CBD beverages to retail stores in 46 states, ahead of announcing it will soon offer Marley CBD beverages and confections.

Kill Cliff CBD beverages experienced rapid growth after teaming up with Joe Rogan to create his own flavor.

The stand-up comedian, UFC commentator and host of a popular podcast, The Joe Rogan Experience, created The Flaming Joe, an energy drink with a spicy jalapeño pineapple taste containing 25 milligrams of CBD.

Photo: Courtesy of Kimzy Nanney on Unsplash

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