Toronto, Ontario and Los Angeles, California--(Newsfile Corp. - April 5, 2022) - The Tinley Beverage Company Inc. (CSE:TNY) (OTCQX: TNYBF) ("Tinley's" or the "Company") is pleased to provide US and Canadian corporate updates.
'NA' Infused Beer Production to Begin
Production of the first non-alcoholic ("NA") beer to be infused at Tinley's Long Beach Facility, Hoppin' High Ride 'HIGH-PA', is expected to be completed during the week of April 11, 2022. Hoppin' High Ride 'HIGH-PA' 'NA' beer is crafted by BJ's Brewhouse team of brew masters, and is licensed to Lakewood Libation Inc.'s ('Lakewood') contract manufacturing client SOMA Beverages. The manufacturing of infused 'NA' beer at Tinley's Long Beach Facility employs a process believed by the Company to be unique at a licensed cannabis manufacturer in California. It employs the previously announced tunnel pasteurizer and a newly engineered closed-loop intake and infusion process, designed to help prevent the NA beer from contamination by exposure to air throughout the intake and the manufacturing process, and which helps ensure that the infused 'NA' beer remains safe and stable throughout the anticipated shelf life of the packaged product.
March Production Milestones
In March 2022, Tinley's Long Beach Facility successfully produced commercial batches of three Calexo 'Watercolors' brand flavours on the newly commissioned Codi can line. Following production, multiple batches of single cans and 4-packs were transferred to Lakewood's on-site licensed distribution area. As previously announced, Tinley's Long Beach Facility now offers the immediate transfer of products from Lakewood's licensed manufacturing area 'through the wall' to its state-licensed adjacent distribution space to complete mandatory 'First-Mile' distribution services including quarantine, lab sampling and full certificate of analysis testing, prior to release for sale.
The Long Beach team also added a 16-oz bottle to its mini line format repertoire, which was used to produce VCC Cannabis Quencher's new 'CQ'-branded 100 mg THC lemonades. The inaugural Humboldt 'Social Nature' sparkling beverage batches were successfully produced in 12 oz glass on the bottle line in March and moved out to distribution.
"The Tinley's team is energized by our recent series of new capability milestones," said Richard Gillis, President & COO, Tinley USA and member, Office of the CEO. "Working through industry-wide supply chain challenges, we are successfully driving can and bottle line volumes for existing and new clients through our three manufacturing lines: bottle, can and 'mini' format. We've also introduced closed-loop and tunnel pasteurization processing for infusing NA beer, and we're once again producing our full line up of Tinley's infused own-brand product. Our value-add co-packing services menu now includes an on-site distribution licence, which can shave days and dollars from the traditional manufacturing-to-retail timeline and cost structure, to the benefit of the Company as well as of our contract manufacturing brand clients," he added.
Additional Production Planned for Tinley's Long Beach Facility April-May 2022
Several previously announced new clients are now expected to start production at Tinley's Long Beach Facility in April 2022 including Green Monké, who have their various lines of cannabis infused and hemp-based drinks manufactured in Canada, the US and the UK, and have now moved their California cannabis-infused can production to Tinley's Long Beach Facility, and 'Mari y Juana', a new California brand of Mexican-inspired sparkling fruit beverages, scheduled for bottling in 12 oz glass this month. Additional production of *Pabst Lab's 'Not Your Father's Root Beer', produced in bottles at Long Beach since 2021, is also on tap with a new order of bottled product expected to be completed by early May 2022. Tinley's own-brand products are expected to be in production in April to help ensure that the full line up of Tinley's '27TM elixirs and Tinley's TonicsTM ready-to-drink mocktails are back on retail shelves by the end of April 2022 to satisfy dispensary and consumer demand in California.
*Pabst Brewing Company does not have a financial stake in Pabst Labs and will not share in the proceeds from cannabis-infused 'Not Your Father's Root Beer' sales.
Canada Tinleys Brand Launch Underway
The Company is delighted to announce the launch of Tinley's Canadian versions of its award-winning coconut 'rum' elixir, and its Paloma-style ready-to-drink mocktail. These two launch SKU's were produced in March 2022 at the Company's two Canadian licensed contract packers to fill initial product orders received from the Ontario Cannabis Store ("OCS"), Canada's largest provincial wholesaler.
The Tinleys '27 coconut 'multiple occasion' product for easy sipping and mixing is expected to be available for order though Ontario dispensaries, and the OCS website by April 10, 2022. The Tinleys Classics sparkling Paloma mocktail is expected to be available for order through Ontario dispensaries and the OCS website by May 10, 2022.
The Company's contract manufacturers, and sales partner, Northern Elements, are planning to present additional SKU's of the Tinley's line up in response to the next OCS call for beverage proposals, expected by the end of May for early October product release. Work continues with the Alberta Gaming and Liquor Commission ("AGLC") and the British Columbia Liquor Distribution Branch ("BCLDB"), both processing and reviewing submissions and performing diligence on brands and licenced manufacturers, for orders and listings for summer and fall 2022. To ensure sufficient inventory of its seven-product line up for potential listings and re-orders, the Company is in the process of reserving production line time at its Canadian contract manufacturers. Discussions with additional provincial wholesalers are planned for Q2 2022 with the Company's sales partners.
Enhanced 'Beauty shots' of the two Tinley's Canadian launch SKU's; these images are used in sales and marketing materials, including website and social media imagery.
To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/8257/119310_3ae67ed76492f8f5_001full.jpg
Lakewood Libations, Inc. Acquisition Transaction Update
As previously disclosed, The Company has entered into a purchase agreement to acquire all the equity interests in Lakewood (the "Lakewood Acquisition"), including the manufacturing and distribution licences underlying the operations at the Company's Long Beach Facility. The closing of this acquisition transaction is subject to certain standard conditions precedent including filing of applicable documentation and both municipal and state regulatory approvals. The Company and Lakewood, working with California cannabis counsel, submitted their applications to the City of Long Beach ("City") for applicable consents and approvals to the Lakewood Acquisition. Completion of the Lakewood Acquisition is subject to the consent and approval of the City and of the State of California.
"Tinley's today enjoys a growing presence in the world's two largest regulated cannabis markets, California and Canada," said Douglas Fulton, Director, and member, Office of the CEO. "With our expertise and state-of-the-art Long Beach assets, we are helping an increasing number of next-generation cannabis brands to gain momentum, increasing share of infused beverages in California and driving incremental profitability for our manufacturing and distribution businesses, as well as for our co-pack brand clients," he added.
About The Tinley Beverage Company and Beckett's Tonics
The Tinley Beverage Company Inc. (CSE: TNY) (OTCQB: TNYBF) develops and has licensed the production through its Long Beach, CA state-licensed manufacturing facility of terpene and cannabis-infused non-alcoholic Tinley's™ '27 and Tinley's™ Classics products which are distributed to licensed dispensaries and home delivery channels in California. Expansion of these products, adapted for manufacturing and sale in Canada, is currently underway. The Beckett's Classics™ and Beckett's '27™ lines of non-alcoholic, terpene-infused non-cannabis versions of these formulations are available in select mainstream food, beverage, and specialty retailers, as well as online, in the United States as well as in select grocery and specialty stores in Canada. Tinley's Facility in Long Beach California contains some of the state's most versatile and technologically advanced cannabis-licensed beverage manufacturing equipment and provides manufacturing and first-mile distribution services under one roof for third-party brands in addition to the Company-owned brands. Please visit www.drinktinley.com, and www.drinkbecketts.com Twitter and Instagram (@drinktinleys and @drinkbecketts) for recipes, product information and home delivery options.
Forward-Looking Statements
This news release contains forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities laws. Forward-looking statements are statements and information that are not historical facts but instead include financial projections and estimates, statements regarding plans, goals, objectives and intentions, statements regarding the Company's expectations with respect to its future business and operations, the closing of the previously announced Lakewood Acquisition, the timing of the Company's manufacturing capability enhancements and production runs, revenue growth, management's expectations regarding growth, the expected benefits from facility and equipment upgrades, expected benefits from first-mile distribution services enabled by the on-site distribution licence, the timing of submissions to Canadian provincial cannabis boards, the timing of manufacturing, distribution and sale of Tinley's infused products in Canada, the timing of the production of new batches of client products at Tinley's Long Beach Facility, and phrases containing words such as "ongoing", "estimates", "expects", or the negative thereof or any other variations thereon or comparable terminology referring to future events or results, or that events or conditions "will", "may", "could", or "should" occur or be achieved, or comparable terminology referring to future events or results. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, delays in obtaining or failures to obtain required governmental, environmental, or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices and delays in the development of projects. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law. Products, formulations, and timelines outlined herein are subject to change at any time.
For further information, please contact:
The Tinley Beverage Company Inc.
Ted Zittell
(310) 507-9146
relations@drinktinley.com
(CSE: TNY) (OTCQX: TNYBF)
Twitter: @drinktinleys and @drinkbecketts
Instagram: @drinktinleys and @drinkbecketts
www.drinktinley.com
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