The cannabis beverage market is about to get a great deal of exposure thanks to a deal signed between the popular the AriZona Beverage iced tea maker and cannabis products maker Dixie Brands Inc. (CSE: DIXI).
The three-year partnership will produce a variety of THC-infused products under the AriZona name, starting with vape pens and gummies, Dixie CEO Chuck Smith said in a news release. He added that the largest selling infused products in the cannabis market are gummies, while the largest selling concentrate product is vapes. Cannabis-infused beverages is a growing segment.
In an interview with Bevnet, Smith noted that - “The distribution channel is very precise through licensed dispensaries, so I think AriZona felt some level of comfort on that.”
AriZona may purchase up to $10 million in shares of Dixie Brands through the exercise of warrants valued at $0.59 per share for a term of up to 24 months. Since announcing the deal, DIXI stock has risen roughly $0.20.
This deal comes in a line of popular mash-ups between cannabis and beverage companies. Corona beer parent Constellation Brands (NYSE: STZ) announced its near 10% stake in Canopy Growth Corp. (TSE WEED), as well as Heineken’s (OTC: HINKF) Lagunitas Brewing who launched cannabis-infused sparkling water in California.