New Facility Employs Proven Technology from Peak to Deliver Product Quality and Competitive Edge in the Rapidly Expanding THC-Infused Beverage Sector
Fort Lauderdale, Florida--(Newsfile Corp. - October 22, 2024) - Flora Growth Corp. (NASDAQ: FLGC) (FSE: 7301) ("Flora" or the "Company") today announced the completion of its specialized beverage facility and receipt of requisite permitting, on time and on budget. This milestone facilitates Flora's entry into the beverage market.
Technology Proven in the Canadian Market
"Our new specialized beverage facility is a game-changer for Flora and the U.S. beverage market as a whole," said Clifford Starke, Chief Executive Officer. "By incorporating Peak's proven technology, we are not only ensuring the highest quality of our products but also creating a competitive advantage. This facility allows us to innovate and respond quickly to market demands, solidifying our position in the space. The Company's goal is to replicate the success of Peak's Canadian business in the United States." The facility's capabilities include over 100 formulations. The Company aims to power the biggest and most recognizable brands in the cannabis sector.
Peak estimates that it produces close to 40% of all cannabis beverages available in Canada. THC-infused beverages are a rapidly growing product category within the cannabis industry and currently represents 2.1% of the Canadian adult-use cannabis market, which equates to approximately CAD$134.4 million.
A Growing Market Seeking Alternatives
Mr. Starke noted, "it is great to see multi-state operators entering the cannabinoid space, further validating the significant opportunities that exist in the hemp and cannabis markets. Over the short-term, premium retailers like Total Wine and ABC have dedicated THC-infused sections. The sector has exploded and timing could not be better to focus on beverages right now."
According to Headset Data, beverages still represent only about 1% to 3% of the U.S. cannabis market with plenty of room for further growth. Beverages also benefit from the fact that people are seeking an alternative to alcohol alternative. Data Bridge Market Research estimates that the U.S. infused beverages market is expected to reach half a billion by 2030, at a CAGR of 14.7% during the forecast period.
As the THC-infused beverage market continues to grow, with consumers increasingly seeking alternatives to alcohol, the quality and consistency of products will be a key differentiator. Flora's specialized beverage facility is designed to meet these demands by producing beverages that offer stability, faster onset times, and better overall consumer experiences.
Looking Ahead: Expansion and Market Impact
"The completion of our specialized beverage facility marks the beginning of an exciting new chapter for Flora. We are now positioned to bring to market a portfolio of beverages that not only meet but exceed consumer expectations," said Clifford Starke, Chief Executive Officer.
With the completion of this facility, Flora is poised to scale production and accelerate its entry into the U.S. THC-infused beverage market. The facility will provide the necessary emulsion to the Company's Melo brand and other brands in the pipeline. It will also enable the Company to enter strategic distribution agreements.
In June 2024, the Company entered a joint venture with Peak. The joint venture will leverage the strengths and resources of both Peak and Flora to capitalize on current commercial opportunities in the beverage market in the U.S., driving mutual growth and success. Peak contributes production know-how, while Flora brings a wealth of brand launching, sales and marketing expertise within the dynamic landscape of lifestyle brands in the U.S. Flora has introduced some of best-selling gummies, edibles, vapes and accessories in the U.S. through its e-commerce platform of over 350,000 customers and a robust business-to-business distribution network.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains "forward-looking statements," as defined by U.S. federal securities laws. Forward-looking statements reflect Flora's current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words "believe," "expect," "anticipate," "will," "could," "would," "should," "may," "plan," "estimate," "intend," "predict," "potential," "continue," and the negatives of these words and other similar expressions generally identify forward-looking statements. These forward-looking statements include, but are not limited to, statements about: Flora's adoption of the emulsion technology positions the Company to replicate this success in the United States, the Company's goal of replicating the success of Peak's Canadian business in the United States, including it creating a competitive advantage, the facility allowing Flora to innovate and respond quickly to market demands, solidifying its position in the space, the joint venture leveraging the strengths and resources of both Peak and Flora to capitalize on current commercial opportunities in the beverage market in the U.S., Flora being poised to scale production and accelerate its entry into the U.S. THC-infused beverage market, the facility providing the necessary emulsion to the Company's Melo brand and other brands in the pipeline, the facility enabling the Company to enter strategic distribution agreements, power the biggest and most recognizable brands in the cannabis sector, and driving mutual growth and success or at all. This facility allows us to innovate and respond quickly to market demands, solidifying our position in the space Such forward-looking statements are subject to various and risks and uncertainties, including those described under section entitled "Risk Factors" in Flora's Annual Report on Form 10-K filed with the United States Securities and Exchange Commission (the "SEC") on March 28, 2024, as such factors may be updated from time to time in Flora's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov/edgar. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Flora's filings with the SEC. While forward-looking statements reflect Flora's good faith beliefs, they are not guarantees of future performance. Flora disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based on information currently available to Flora (or to third parties making the forward-looking statements).
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/227385
