- Valens GroWorks (TSXV:VLNS) has launched a new line of cannabis-infused beverages in Canada
- The company produced the beverages under a white label agreement with Iconic Brewing subsidiary, A1 Cannabis Company
- The new beverage line includes CBD-infused iced tea and THC-infused citrus water
- The products will be available for purchase at select stores within the next few weeks
- Valens’ share price is down 1.48 per cent, and is currently trading at $3.32 per share
Cannabis company Valens GroWorks (TSXV:VLNS) has announced the launch of a new line of cannabis-infused beverages for the Canadian market.
The company produced the beverage line under a white label agreement with A1 Cannabis Company, a subsidiary of Iconic Brewing.
Per the agreement, Valens is responsible for providing high-quality cannabis extracts, formulation services, and its emulsion technology IP. In return, A1 Cannabis will brand and market the beverages throughout Canada.
The agreement also dictates that the partnership will produce at least 2.5 million beverages over a five year period.
Valens CEO, Tyler Robson, commented on the joint enterprise. “Our agreement with A1 demonstrates the strategic value of partnering with leading companies that share our vision. It also reinforces our commitment to launching the Cannabis 2.0 products that consumers are looking for,” he said.
The new line of beverages includes BASECAMP, a CBD-infused iced tea, and SUMMIT, a THC-infused citrus water. BASECAMP will be available for purchase at select Ontario retailers in the coming days, with additional retailers to eventually follow. The SUMMIT citrus water should be available at select stores within a few weeks’ time.
Valens developed the BASECAMP and SUMMIT beverages using the SōRSE emulsion technology. The technology converts cannabis oil into water-soluble forms, for use in beverages, edibles, topicals, and other consumer products.
The emulsion process has a number of advantages, including elimination of cannabis taste, colour, and smell from infused products. The technology can increase onset time while reducing offset time, use lower cannabinoid doses, and potentially extend shelf life.
The cannabis beverage market in Canada is rapidly growing, with expected revenue of about C$529 million per year. A Deloitte report has projected that consumers will spend about $1.6 billion a year on cannabis extract-based products, including beverages.
Valens’ share price is down 1.48 per cent, and is currently trading at $3.32 per share as of 10:02am EST.
