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Cannabis Briefs for June 11, 2019

June 11, 2019

•Trait Biosciences has introduced a suite of tasteless, odorless, fully water-soluble cannabinoids aimed at the food, beverage, and nutraceutical industries. The product of more than two years of research led by chief science officer Richard Sayre—who is also part of NASA’s team researching crops for a Mars mission—the cannabinoids come in both clear liquid and powder forms, and claim to be 1 million times more water-soluble than others currently in use. Peter McDonough, the former Diageo North America CMO who was recently named CEO at Trait, said he believes the new cannabinoids “will be the catalyst for a broad new range of trusted, quality cannabinoid-infused products.” According to the company, the newly developed cannabinoids improve onset time and have superior stability and shelf life relative to the more prevalent fat-based cannabinoids.

•U.S. vaporizer manufacturer Pax Labs has partnered with Canadian companies Aphria, Aurora, Organigram, and Supreme Cannabis. Moving forward, these cannabis producers will offer vape cartridges compatible with the Pax Era device as part of their product lines. The Era is Pax’s flagship product, a slim “pen-and-pod system” that closely resembles the wildly popular Juul, whose parent company spun off from Pax in 2017. Among other products, Supreme Cannabis’ flagship brand 7Acres will launch its vape line exclusively compatible with the Pax Era. Both Pax hardware and vape cartridges will debut in Canada later this year, when the country is slated to phase in legalization of edibles, oils, and other new formats.

•U.S. cannabis retailer MedMen has reached a definitive agreement to fully acquire One Love Beach Club, a dispensary in Long Beach, California. MedMen will pay $13 million total, $10 million of which will be paid in shares along with $1 million in cash at closing and $2 million in deferred cash. One Love says it’s currently on a run-rate of approximately $6 million in unaudited gross revenue with an unaudited EBITDA margin of approximately 29%. MedMen currently operates 11 eleven other dispensaries in California. Overall, the company has 84 retail licenses across 12 states, with 35 stores currently in operation.

•Portland, Oregon-based Eastside Distilling has secured distribution for its Outlandish line of CBD-based beverages in Oregon. Point Blank Distributing, an Oregon company that focuses on craft beer, will handle the account. The initial Outlandish lineup will consist of RTD slim cans of three tonics—one seltzer-based, one ginger-based, and one quinine-based—with further line extensions planned. Eastside will limit distribution to Oregon for the time being as they establish marketing and messaging, although they “intend to expand outside Oregon as federal regulation evolves,” according to company president Robert Manfredonia.

•TerrAscend Corp has completed its acquisition of five California retail locations and the Valhalla brand of premium edibles from The Apothecarium. Part of a previously announced $118 million deal—which will also include The Apothecarium’s Nevada operations, pending regulatory approval—the move gives Canada-based TerrAscend a U.S. retail footprint. In addition to The Apothecarium’s existing locations, TerrAscend intends to expand the chain with new retail outlets in Berkeley, California, and Phillipsburg, New Jersey by the end of the year. TerrAscend is part of the portfolio of Canopy Rivers, Canopy Growth’s venture capital arm.

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