Kitchen & Bottling Line In his most recent interview, Paul hinted of possibly utilizing the other building they own “50 meters from their new facility” to set up a kitchen and bottling line.
What are your thoughts on adding edibles and infused beverages to their line of products? Pros/Cons?
With 1933’s expertise in premium quality extractions, adding an infused beverage bottling line seems like a no brainer as the industry in the US is still in its infancy and is projected to produce enormous revenues not to mention possibly attracting some big partnerships.
According to recent data there was a 14 percent increase in the sales of cannabis-infused beverages, up from merely 1 percent of the market. Another study found 30 percent of Americans are willing to try cannabis-infused nonalcoholic beverages.
1933’s new partnership with Five Star Extracts (https://www.fivestarextracts.com/) could see their “Double Shot Beverage” the first product on 1933’s bottling line for the Nevada market.
https://www.1933industries.com/portfolio/five-star-extracts
Also adding a kitchen seems like something that should have already been in the works for 1933 and should be a definitive plan moving forward.
Sales of edibles skyrocketed across the nation in 2020 as consumers shied away from inhalable forms of cannabis during the COVID-19 pandemic in favor of more discreet consumption methods.
The surge is prompting edibles manufacturers to invest in research and development and new product lines for 2021.
Recent data shows that for all of 2020, sales of adult-use and medical edibles grew by 60% across seven state markets – to $1.23 billion in 2020 from $767 million in 2019.
That performance meant edibles outperformed the total cannabis market, which grew 54% last year.
The seven states were California, Colorado, Massachusetts, Michigan, Nevada, Oregon and Washington.
I realize this recent data comes during a pandemic that severely affects the lungs and I’m sure many have been concerned about sharing joints or just smoking in general but I truly believe this trend will continue. I also think this is something investors will strongly consider when doing their DD on investing in this space.
The FDA has taken the position that it is unlawful to sell CBD-infused food or supplements through interstate commerce, largely because CBD is being studied for its drug effects. So far, most enforcement is centered around product claims touting CBD’s effectiveness in treating medical conditions.
While the FDA has been slow to act on the issue due to a reported lack of data about the safety of CBD, many states that are home to sizable hemp industries have affirmed that CBD is legal to add to consumable goods.
IMO I think the time and investment in a kitchen and bottling line rather than hemp processing or more plant population would be better for 1933's future in this space.
https://www.marketwatch.com/press-release/global-cannabis-drinks-market-2021-outlook-to-2027-top-companies-in-market-trends-growth-factors-and-details-for-business-development-2021-03-23