Lexaria’s DehydraTECH Builds Market Share in Cannabis Beverage Industry
May 1st, 2018
Exclusive, News, Top News
The cannabis industry is expected to reach $50 billion by 2026 in the U.S. and C$22.6 billion over the coming years in Canada, according to industry analysts. While cannabis flower still commands the most sales, cannabis-infused products have become the fastest-growing segment across North America. Investors may want to look at companies serving this unique market segment, particularly as recreational legalization goes into effect.
Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) recently announced a definitive technology licensing agreement with GP Holdings LLC, a developer of cannabis infused beverages, providing access to its breakthrough technology that enhances bioavailability.
Cannabis Beverage Market
Constellation Brands’ (NYSE: STZ) purchase of a 9.9 percent equity stake in Canopy Growth (TSX: WEED) for $191 million sent shockwaves through the cannabis community in October of 2017. Constellation Brands President and CEO Rob Sands said that the nationwide legalization of marijuana will occur in the United States, but in the meantime, the company would start to sell in countries where recreational marijuana is already legal.
Specialty beverage companies had already been coming out with new cannabinoid infused beverages before the deal, but the move signaled that larger players in the multi-billion dollar beverage industry may be interested in expanding. Given the size of the alcohol industry, many of these companies may see cannabis-infused beverages as a market that could become just as large and offer a different type of effect upon consumption.
In July 2019, the Cannabis Drinks Expo will debut in San Francisco to bring together drinks producers, manufacturers, brand owners, distilleries, and breweries, along with the beverage supply chain to discuss the implications of legal cannabis. Events like these could open up the market to more established beverage companies looking to build a presence in the industry by incorporating cannabinoids into their products in newly legal markets.
California’s cannabis beverage market is expected to become one of the largest edible product segments following the state’s legalization of recreational cannabis this year. Arcview Market Research, in partnership with New Frontier, estimated that California’s market could reach $6.5 billion by 2020, driven by the legalization of recreational cannabis. These figures translate into an enormous market opportunity for companies competing in the space.
Lexaria’s patented DehydraTECH™ technology is designed to increase the bioavailability, improve the flavors, and rapidity of onset of cannabinoids across a wide range of products, including beverages.
In late-April, the company announced a deal with GP Holdings LLC to leverage the technology to bring cannabis-infused beverages to market in California. GP Holdings aims to become a leading THC beverage contract manufacturer in the state with a new state-of-the-art bottling facility coming online within the next two quarters. The two companies have been collaborating for months on integrating DehydraTECH™ into its formulations.
“The use of DehydraTECH™ triggers a race to the top in the California THC beverage and topicals market through this 5-year license agreement,” said Lexaria CEO Chris Bunka in the press release announcing the deal. “This is another long-term strategic relationship that will give consumers the faster acting and highly potent products they deserve, and class leading flavor profiles for the beverage segment in particular.”
Under the terms of the agreement, Lexaria provided GP Holdings with semi-exclusive rights for five years in exchange for a lump sum and royalty on revenue generated from products developed using its DehydraTECH™ technology. The agreement enables Lexaria to generate near-term revenue while still offering other licensee partners the option of using GP’s formulation and expertise to produce cannabis-infused beverages in the state.
Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) has made tremendous progress in commercializing its DehydraTECH™ technology. In addition to the GP Holdings agreement, the company announced a deal with Hill Street Beverage Co. to develop cannabis-infused alcohol-free beers and wines in Canada. These types of deals should create steady recurring cash flow and exceptional long-term value for shareholders.
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://www.cannabisfn.com/legal-disclaimer/
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
Follow Us on Social Media
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.