- Functional beverage market estimated at $14 billion worldwide currently; CBD hemp extract market expected to hit $22 billion by 2022
- Phivida Holdings’ recent announcement of new Oki brand heralds introduction of full spectrum hemp extract-infused iced teas, flavored waters
- Company also has joint venture with WeedMD Inc. to produce cannabis-infused beverages under Cannabis Beverages, Inc. label
The concept that beverages may serve a “functional” purpose has developed within the health and wellness industry as cannabis producers examine ever-expanding options for putting the plant’s properties to use. Hemp-cultivated cannabinoid innovator Phivida Holdings Inc. (CSE: VIDA) (OTCQX: PHVAF) is pursuing the beneficial possibilities of new drink products infused with active hemp extract while marketing its existing line of Vida+ brand hemp oil extracts and capsules.
With less than a month remaining until Canada approves a full range of medical and recreational drug uses of the cannabis plant nationwide, cannabis industry companies and their ancillaries are preparing for an onslaught of consumers interested in mining cannabis’ therapeutic potential.
Phivida’s core purpose of using whole plant nutrition and natural ingredients as the best way to maintain overall physical health and balance has led to the creation of its premium, full spectrum cannabinoid line of extract and capsule products designed to help people feel their best. The company’s recent announcement of a joint venture with licensed Canadian medical marijuana producer WeedMD Inc. (TSX.V: WMD) (OTC: WDDMF) (FSE: 4WE) to create a line of cannabis-infused drinks under the Cannabis Beverages, Inc. (“CanBev”) label will take Phivida’s product line to a new retail audience with its expected rollout in 2019 (http://nnw.fm/e0Taw). Phivida also recently announced a distribution plan for its new Oki brand iced tea and flavored water products through an exclusive agreement with Natural Specialty Sales to utilize that company’s network of up to 2,400 retail outlets across the United States (http://nnw.fm/UXr28).
Natural Specialty Sales’ network includes Whole Foods, Sprouts Farmers Market and national co-op grocers. The Oki beverages will be sold in recyclable 16-ounce glass bottles and contain 10 mg of hemp extract. The initial production run included 100,000 bottles, with 150,000 more scheduled for distribution exclusively in the United States. Supplements are also available in tinctures or capsules ranging in dosage from 600 to 1,800 mg of active hemp extract.
The CanBev products will be distributed throughout Canada and online, with legalized international market outlets expected to follow. WeedMD will supply the cannabinoid extracts for the drinks while Phivida will lead new product innovation, research and development, formulation, packaging and branding, and will sublicense its current and future trademarks, intellectual property, branding and packaging to CanBev.
“The size of the functional beverage market is estimated to be approximately $14 billion and the hemp extract market is poised to explode to $22 billion by 2022,” Chief Marketing Officer Mike Cornwell said in a news release. “We’re proud to be able to offer consumers a new line of products that could benefit them, using formats like beverages and supplements, which are relatively unchartered by other companies in our category. We truly are in the midst of very exciting times.”
While the idea of drinkable cannabis was once considered unthinkable among marijuana’s recreational smokers, recent studies have shown that beer consumption has decreased significantly in the United States where cannabis has been legalized (http://nnw.fm/wMH4a), prompting industry efforts to combine the two products and retain the consumer base, or even increase it.
Cannabis’ reputation has transformed from that of a silly, intoxicating “weed” to a respected and in-demand medicinal herb for treating select nervous system disorders. Cannabis-infused beverages and other consumables are now poised to also gain a recreational use following among people who want to enjoy its relaxing properties but are offended by stinky and unhealthful smoke, as well as the hangover that alcohol can leave with drinkers who otherwise enjoy its recreational use.
For more information, visit the company’s website at www.Phivida.com
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