While the Coca-Cola Co. (NYSE:KO) announcement regarding CBD beverages caused a small pop in share price for shares of Coke, it was nothing compared to the market’s reaction for an upcoming line of Marley-branded CBD beverages.
The announcement was not brand new, but shares of New Age Beverages Corp. (NASDAQ:NBEV) still ripped up over 12% today as cannabis investors finally absorbed the company’s September 19th announcement regarding the launch of a portfolio of CBD infused beverages.
Recent Research and Development
Given the growing awareness of the potential health benefits of CBD, the New Age Health Sciences Division evaluated the data and science supporting the emerging segment. As a result of that assessment, New Age began testing a CBD-infused beverage earlier this year in its home market in Colorado.
Based on the learnings gained in the test market and the increased consumer acceptance of the segment, New Age has decided to expand its presence in the category. The company has taken the learnings it gained in product formulation and taste, efficacy and dosage, and consumer communication and has developed a portfolio of CBD-infused beverages.
Bolstering New Age’s Beverage Brand Portfolio
This new line of CBD-infused beverages will add to New Age Beverages’ existing portfolio of beverage brands including Búcha Live Kombucha, XingTea, Coco-Libre, and last but not least Marley Beverage, which is created in partnership with Bob Marley’s family as a line of relaxation drinks.
Marley Beverage Co. is where the CBD beverages line of products fit in nicely. While Privateer Holdings may own the rights to produce Marley-branded cannabis accessories, New Age Beverages is the Marley family’s partner in the drink side of things. This may prove to be extremely valuable for NBEV as time goes on.
Zach Ross, Marley Marketing Manager at New Age commented, “We believe we have developed unique consumer insights and accessed superior technology in CBD-infused beverages over the past year, and we are excited to share those insights with key retail partners. We believe we are in a position to bring national leadership to this emerging growth segment, and intend to launch the most efficacious and safe CBD-infused products for consumers, with the most responsible marketing and education to a segment that has potential to be transformative to healthy functional beverages.”
Extensive Drink Distribution
Currently, New Age Beverages’ brands are sold across all 50 states within the US and in more than 15 countries internationally across all channels via direct and store door distribution systems.
With a large portion of the company’s recent $4.75 million debt financing earmarked for new inventory, New Age Beverages is ready to become a major player in the CBD-infused beverages space overnight.
All of these factors combined have put shares of New Age Beverages onto my radar. Be sure to subscribe to Cannabis Stock Updates here so you never miss an important update.
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