- The cannabis-infused beverage market is projected to outgrow the demand for other kinds of cannabis products, representing approximately 20 percent of the edibles market by 2022
- Many beverage producers are already looking for strategic partnerships that will enable them to capture a portion of the lucrative space
- Sproutly Canada and Moosehead Breweries are two entities that have entered into such a joint venture for the purpose of launching their own innovative line of cannabis-infused beverages by the time full legalization occurs in Canada
The cannabis-infused beverage market is projected to grow massively in the years to come. Over the coming three years, this market could reach $600 million in the U.S. alone (http://cnw.fm/2kGrD). Forecasts suggest that the revenue from cannabis-infused beverages could outgrow the demand for other kinds of cannabis products, capturing approximately 20 percent of the edibles market by 2022.
In Canada, where the cannabis-infused beverages market will only be legalized this fall, experts anticipate this segment to have exponential growth and reach an impressive C$4.4 billion ($3.26 billion) in five years. The entire Canadian cannabis market is set to exceed C$7 billion ($5.18 billion) this year (http://cnw.fm/8pOnL).
This trend hasn’t gone unnoticed by large beverage producers. As a result, some of them have already sought opportunities to partner with cannabis producers and capture a share of the rapidly expanding market.
Sproutly Canada Inc. (CSE: SPR) (OTCQB: SRUTF) (FRA: 38G) and Moosehead Breweries Limited, the largest and oldest beer company in Canada, announced such a partnership on April 30, 2019.
The two entities entered into a definitive agreement to form an exclusive joint venture for the development and production of non-alcoholic cannabis-infused beverages. Sproutly’s proprietary water-soluble cannabinoids (Infuz2O) technology will be utilized to formulate and deliver the new range of beverages to the Canadian market.
Through the use of Sproutly’s proprietary technology, the two companies will work to address some of the most common problems standing in front of mass consumer appeal for cannabis-infused beverages. For many companies, it’s still a challenge to develop a product that has a great taste while ensuring an immediate onset and a controllable experience.
Sproutly’s Infuz2O is patent-pending and validated by 13 years of scientific research. It allows for the cannabis effect to be felt in as little as five minutes and to last for up to 90 minutes. Thus, beverages created via the joint venture will deliver a cannabis experience similar to traditional flower cannabis, but without the need to inhale smoke.
Sproutly and Moosehead are already working on having a finalized product to put on the shelves as soon as legalization occurs in Canada.
Moosehead’s operational infrastructure will allow the joint venture to fast track its product launch strategy, while Sproutly’s cultivation facility and processing license are expected to speed up all of the formulation work that has to be done in advance.
Sproutly and Moosehead’s agreement is for a 50-50 equity partnership. The board of directors will have an equal number of board members from each company.
Moosehead has more than 150 years of brewing experience. Over the course of six generations of family ownership, the company has reached a sales volume of more than 140 million cans and bottles of beer per year. Moosehead products are distributed in Canada, the U.S. and 15 other countries.
A focus on beverages and advanced cannabis cultivation differentiates Sproutly from other industry representatives. The company’s core mission is to become the leading supplier to the cannabis beverage and edibles market.
For more information, visit the company’s website at www.Sproutly.ca
NOTE TO INVESTORS: The latest news and updates relating to SRUTF are available in the company’s newsroom at http://cnw.fm/SPR
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