Market Overview

Infused Drinks Offer Consumers a New Way to Ingest Cannabis


NEW YORK, Aug. 15, 2019 /PRNewswire/ -- Each year, health officials conduct new clinical trials to uncover the next generation of medical treatments. Recently, cannabidiol or CBD has become an increasingly popular option because of its therapeutic effects. Additionally, CBD can be used for both recreational and medical purposes. Predominantly, the CBD medical sector is expected to account for the majority of the overall industry as, specifically, the therapeutic grade segment is expected to be the primary driver for the market. For instance, in 2018, the therapeutic grade segment accounted for 58% of the global CBD market. The compound is now primarily being used to treat neuropsychiatric disorders as well as other chronic conditions. And notably, the fibromyalgia segment dominated the industry in 2018 with a market valuation of USD 686.19 Million. Additionally, the CBD industry was primarily driven by the increasing instances of physiological disorders among young adults, while symptoms such as musculoskeletal pain, fatigue, and other types of discomfort led the fibromyalgia disorder segment. Extensive research has also concluded that CBD can effectively be used to reduce pain, improve sleep, and reduce headstrong pains for people suffering with fibromyalgia. Additionally, CBD is also known to treat migraines and irritable bowel syndrome. While CBD isn't yet considered an approved treatment in most countries, medical institutions and researchers are continuing to evaluate its efficacy. Now, based on the overwhelmingly positive results of many trials, the CBD industry is positioned to become a flourishing medical market. And according to data compiled by Fior Markets, the global CBD industry was valued at USD 1.45 Billion in 2018. By 2026, the market is projected to reach USD 17.34 Billion while exhibiting a CAGR of 36.3% during the forecast period from 2019 to 2026. BevCanna Enterprises Inc. (OTC:BVNNF) (CSE:BEV), Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB), Zynerba Pharmaceuticals, Inc. (NASDAQ:ZYNE), Charlotte's Web Holdings, Inc. (OTC:CWBHF) (TSX:CWEB), The Green Organic Dutchman Holdings Ltd. (OTC:TGODF) (TSX:TGOD)

Medical cannabis can be ingested in various ways, however, most people tend to either smoke or vape it. The most common consumption method is smoking dried cannabis flower through rolled joints or other paraphernalia. Consumers also vape cannabis-based extracts or concentrates because it is much more potent and delivers faster than smoking. While smoking and vaping are the most popular methods, savvy consumers and entrepreneurs have developed other innovative ways to consume cannabis. For instance, edibles and topicals have become highly popular because they don't involve the harmful effects of smoking or vaping. However, cannabis-infused beverages have also become highly popular because they introduced a completely new method to ingest cannabis. Generally, consumers can find beverages such as coffee, soda, juice, tea, and alcohol, packed with either THC or CBD. And typically, most infused beverages contain minimal traces of THC or CBD so they are not highly potent. Recreational users can simply enjoy an infused beverage to relax. On the other hand, medical patients may seek to consume infused beverages to treat their mild ailments. Predominantly, CBD-infused beverages are much more common because they are globally more accessible and available. However, in some instances, patients suffering from unbearable conditions that cause immense discomfort may prefer to use a tetrahydrocannabinol or THC-based solution. While CBD and THC can both effectively treat conditions, the mind-altering and cerebral effects of THC are much more effective in suppressing symptoms. Despite the efficiency of THC, many producers aim to negate or minimize the psychoactive properties by mixing CBD content into THC dominant products, thereby reducing the mind-altering effects while maintaining the therapeutic benefits. For example, some products can be an 80-20 mix of CBD to THC, which would not cause any psychoactive effects on the consumer. Depending on the severity, some patients may opt for a 50-50 mix of CBD to THC. "CBD is the most promising drug that has come out for neuropsychiatric diseases in the last 50 years," said Dr. Esther Blessing, an Assistant Professor at New York University School of Medicine. "The reason it is so promising is that it has a unique combination of safety and effectiveness across of very broad range of conditions."

BevCanna Enterprises Inc. (OTC:BVNNF) (CSE:BEV) is also listed on the Canadian Securities Exchange under the ticker (CSE:BEV). Yesterday, the Company announced breaking news that, "their proprietary powder ingredient, Deeper Green™, has successfully completed independent laboratory testing. Tests have confirmed that Deeper Green, and products infused with Deeper Green, will easily pass the Cannabis Compliance Regulations set in California, and will allow for reliable water-soluble infusion manufacturing processes and dosing confidence for consumers.

Deeper Green is a tasteless, odorless, water-soluble powdered ingredient, and has been proven to be a stable ingredient that when tested with THC, consistently delivers target concentrations within one batch (±0.3%) and from batch-to-batch (±0.6%). Independent laboratory testing has also confirmed that Deeper Green precisely infuses granular drink mixes (±0.4%) and ready-to-drink water beverages (±0.3%).

'The successful testing of Deeper Green is exciting in that it will extend BevCanna's assortment of products,' said Emma Andrews, Chief Commercialization Officer at BevCanna. 'As beverage experts, we're already planning a number of ready-to-drink formulations, and we can now add powdered options to our range. We know that consumers want choice in their cannabis-infused beverages to suit various use occasions, and Deeper Green will allow us to provide that.'

Deeper Green's powder technology also allows for a full range of cannabinoid inputs, including THC, CBD, full-spectrum extracts and hemp-based CBD.

'We'll also commercialize Deeper Green into our in-house beverage lines and explore alternative formats,' added Andrews. 'The possibilities that this tasteless, odorless water-soluble powder technology opens up are endless and we're eager to leverage this innovative and proprietary technology.'

About BevCanna Enterprises Inc: BevCanna Enterprises Inc. (CSE:BEV) develops and manufactures cannabinoid-infused beverages and consumer products for in-house brands and white label clients. With decades of experience creating, branding and distributing iconic brands that have resonated with consumers on a global scale, the team demonstrates an expertise unmatched in the emerging cannabis beverage category. Based in British Columbia, Canada, BevCanna has a 100-acre outdoor cultivation site in the fertile Okanagan Valley and the exclusive rights to a pristine spring water aquifer, as well as a world-class 40,000-square-foot, HACCP certified manufacturing facility, with a current bottling capacity of up to 72M bottles per shift/per annum."

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Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB), headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 625,000 kg per annum and sales and operations in 24 countries across five continents, is one of the world's largest and leading cannabis companies. Aurora Cannabis Inc. recently announced that it had received Health Canada licenses for outdoor cultivation at two Canadian sites. The new sites in Quebec and British Columbia will be used for cultivation research to develop new technology, genetics and intellectual property in order to drive sustainable, high-quality outdoor production. Aurora purposefully chose the outdoor sites because they represent two different growing environments. The company will conduct research on cultivation techniques to further excel at growing cannabis in varying climate conditions and will examine approaches to environmentally sustainable cannabis agriculture. "Aurora believes in innovative operations and intensive research and we're applying our approach to outdoor grown cannabis," said Aurora Chief Executive Officer Terry Booth. "Our team plans to use these areas to ensure we are able to consistently grow the high-quality cannabis Aurora has become known for around the world. We're proud to be a Canadian company and this is a further commitment to research and job creation in Canada."

Zynerba Pharmaceuticals, Inc. (NASDAQ:ZYNE) is the leader in pharmaceutically-produced transdermal cannabinoid therapies for rare and near-rare neuropsychiatric disorders. Zynerba Pharmaceuticals, Inc. recently announced that the U.S. Food and Drug Administration (FDA) had granted Fast Track Designation for the Company's lead development candidate Zygel™ (ZYN002 CBD gel) for treatment of behavioral symptoms associated with Fragile X Syndrome (FXS). FDA's Fast Track program is designed to facilitate the development of drugs intended to treat serious conditions and fill unmet medical needs and can lead to expedited review by FDA in order to get new important drugs to the patient earlier. Zygel (CBD gel) is the first and only pharmaceutically-manufactured CBD formulated as a patent-protected permeation-enhanced clear gel, designed to provide controlled drug delivery into the bloodstream transdermally (i.e. through the skin). Recent studies suggest that FXS and other neuropsychiatric conditions may be associated with a disruption in the endocannabinoid (EC) system. "The FDA's decision to grant Fast Track Designation for Zygel underscores the significance and severity of the unmet medical need that exists for patients living with Fragile X Syndrome and their caregivers," said Armando Anido, Chairman and Chief Executive Officer of Zynerba. "We believe that Zygel has the potential to be the first treatment indicated to directly address the core behavioral symptoms of this syndrome, and we look forward to working closely with the FDA to obtain approval to market Zygel as soon as possible."

Charlotte's Web Holdings, Inc. (OTCQX:CWBHF) (TSX:CWEB) is the market leader in the production and distribution of innovative hemp-derived cannabidiol ("CBD") wellness products. Charlotte's Web Holdings, Inc. recently unveiled its newest CBD product line - hemp extract-infused CBD Gummies – made with whole-plant extract from its prized hemp genetics and featuring synergistic functional ingredients to support specific health related functions including everyday stress, sleep, and recovery from exercise or active lifestyles. The gummies feature Charlotte's Web whole-plant hemp extract made from the Company's proprietary hemp genetics that people know and trust. Charlotte's Web extracts contain a full-spectrum of 80+ naturally occurring phytocannabinoids plus terpenes and flavonoids. In addition, the three varieties of gummies are uniquely formulated and enhanced with functional herbs and botanical supplements that work in synergy to further support a targeted wellness focus. "Gummies are a very popular edible format as a result of convenience and measurable consumption," stated Kelsey Morrison, Associate Director of Product Development at Charlotte's Web. "This new delivery format from Charlotte's Web provides an easy bite-sized way to ingest full-spectrum hemp-extract CBD."

The Green Organic Dutchman Holdings Ltd. (OTCQX:TGODF) (TSX:TGOD) is a publicly traded, premium global organic cannabis company, with operations focused on medical cannabis markets in Canada, Europe, the Caribbean and Latin America, as well as the Canadian adult-use market. The Green Organic Dutchman Holdings Ltd. recently announced that its wholly owned subsidiary, HemPoland, has entered into an agreement with Mediakos UG haftungsbeschraenkt (Mediakos) to be the exclusive distributor of CannabiGold, its premium hemp CBD brand, for the German pharmacy market. Mediakos UG spun out of, a leading German online pharmacy, and is managed by a team of seasoned industry executives with demonstrated expertise in marketing and distribution of health and wellness products. It currently distributes a broad portfolio of products to a network of more than 15,000 pharmacies and can capitalize on over 10 million customers. "With a population of over 82 million, Germany plays a pivotal role in TGOD's international expansion strategy," commented Brian Athaide, Chief Executive Officer of TGOD. "We are thrilled to be working with Mediakos' experienced team as we continue to solidify CannabiGold's position as a leading brand within the European market."

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