The global cannabis beverages market size is expected to reach USD 2.8 billion by 2025, expanding at a CAGR of 17.8% during the forecast period, according to a new report by Grand View Research, Inc. The market is highly fragmented in nature, owing to the presence of the small and medium scale companies. Majority of the companies are based in Canada owing to the legalization of marijuana for medical and recreational purpose in the country. Rise in legalization of marijuana in order to eradicate the black market and to boost the tax revenue from legal sales of marijuana products is anticipated to positively influence the growth.
Key suggestions from the report:
- By Type, non-alcoholic segment was the largest and fastest growing segment in 2018 and is expected to continue leading over the forecasted period, majorly driven by rising product demand from the newcomers and female consumers
- CBC infused cannabis beverages is estimated to be the fastest growing segment over the forecast period, owing to the non-psychoactive property of CBD
- In Europe, Netherland hold the largest market share owing to the presence of cafes and restaurants dedicated for cannabis consumption and increasing trend of cannabis tourism in the country
- Some of the key players operating in the global market include New Age Beverages Corporation; The Alkaline Water Company; Phivida Holdings Inc.; Koios Beverage Corporation.; VCC Brand; Dixie Brands Inc.; Keef Brand; Hexo Corp; Aphria; and Canopy Growth
Read 80 page research report with ToC on “Cannabis Beverages Market Size, Share & Trends Analysis Report By Type (Alcoholic, Non-Alcoholic), By Component (Cannabidiol (CBD), Tetrahydrocannabinol (THC)), And Segment Forecasts, 2019 – 2025” at: https://www.grandviewresearch.com/industry-analysis/cannabis-beverages-market
Rising popularity of wellness drinks is also expected to support the demand over the forecast period. The legalization of cannabis for medical and recreational purpose has had a strong impact on the sales of alcoholic drinks. As a result, many alcohol manufacturers are investing in the growing trend of marijuana-infused drinks. For instance, Lagunitas, Heineken’s fast-growing California beer label, launched Hi-Fi Hops, which is a cannabis-based beverage with zero calories or carbs and is infused with Cannabidiol (CBD) and Tetrahydrocannabinol (THC). In 2017, Constellation Brands, third largest beer manufacturer in U.S., entered into a partnership with Canopy Growth-world’s largest marijuana grower to develop cannabis-infused beverages.
Consumers are shifting their preference from soft drinks to wellness drinks leading into increasing sale of cannabis beverages. Low sugar content in drinks is the major driving factor for the growth of the market. Also, consumers prefer these beverages as an alternative to cannabis smoking and consumption of marijuana-infused chocolates, cookies, brownies and confectionaries like gummies and candies. Off trade sales channels, such as hotels, cafes, restaurants, clubs, and lounges are expected to boost the popularity of the product among consumers.
Strong demand for cannabis beverages from millennials is also anticipated to drive the market growth. As per a 2017 Yahoo News poll, majority of the 55 million recreational marijuana users in U.S. were millennials. Most millennials consume marijuana socially and only 25% of them consume it alone. A 10-year study by researchers at University of Connecticut and Georgia State University completed in 2017, found that in U.S. counties where marijuana was legalized, wine and beer purchases decreased by 15%.
North America is estimated to be the fastest and largest market over the forecast period. The growth is majorly driven by the legalization of marijuana for medical and recreational purpose. As per the National Conference of State Legislatures, total 33 states, District of Columbia, Guam, Puerto Rico, and U.S. Virgin Islands have approved publicly available medical cannabis program resulting in increased launch of several cannabis drinks. Also, 13 states in U.S. allow the use of low THC and high CBD products for medical purposes, resulting in high demand for CBD infused cannabis drinks in the region.
Europe is estimated to witness strong growth over the forecast period, owing to a rise in cannabis consumers in the region. As per the Cannabis Trade Association, the number of CBD user in U.K. increased from 125,000 in 2016 to 250,000 in 2017. Also, the companies operating in the region are launching products to keep up with the growing trend of wellness drinks. For Instance, Manchester-based CBD Ultra and Cloud 9 Brewing have launched U.K.’s first CBD Session IPA beer brewed with Cannabis Sativa extract.
Grand View Research has segmented the global cannabis beverages market based on type, component, and region:
- Cannabis Beverages Type Outlook (Revenue, USD Million, 2015 – 2025)
- Cannabis Beverages Component Outlook (Revenue, USD Million, 2015 – 2025)
- Cannabidiol (CBD)
- Tetrahydrocannabinol (THC)
- Cannabis Beverages Regional Outlook (Revenue, USD Million, 2015 – 2025)
- North America
- Rest of the World
- North America
Find more research reports on Consumer F&B Industry, by Grand View Research:
- Organic Beverages Market – The global organic beverages market size was valued at USD 20.31 billion in 2018 and is projected to expand further at a CAGR of 13.0% over the forecast period.
- Fruit Beverages Market – The global fruit beverages market size was valued at USD 33.92 billion in 2018 and is projected to expand further at a CAGR of 6.2% from 2019 to 2025.
- Nonalcoholic Beverage Market – The global nonalcoholic beverage market size was valued at USD 967.3 billion in 2016. The market is anticipated to grow at an estimated CAGR of 5.8% from 2017 to 2025 owing to factors such as rising disposable income, population growth, and changing lifestyle.
SOURCE Grand View Research, Inc.
Village Farms Opts to Receive $5.94 Million Cash Refund from Pure Sunfarms
Village Farms International, Inc. (“Village Farms“) (TSX: VFF; Nasdaq: VFF) today announced that it has opted to receive a $5.94 million cash refund from Pure Sunfarms Corp. (“Pure Sunfarms“) relating to an additional equity contribution that Village Farms made to Pure Sunfarms on November 19, 2019 (the “VF Additional Equity Contribution“).
As previously disclosed by Emerald Health Therapeutics, Inc. (“Emerald“), it has been disputing Village Farms’ ability to make the VF Additional Equity Contribution of $5.94 million, as well as the cancellation of 5,940,000 common shares of Pure Sunfarms placed in escrow pending payment by Emerald of its related $5.94 million equity contribution, following its failure to make its required equity contribution to Pure Sunfarms on November 1, 2019. In an effort to narrow the issues in dispute and accelerate the resolution of this shareholder dispute, Village Farms decided to unwind the VF Additional Equity Contribution, which has now been completed, with Pure Sunfarms providing Village Farms with the $5.94 million cash refund. The $5.94 million cash refund to Village Farms also eliminates the costs and delays involved in obtaining an independent appraisal of Pure Sunfarms that resulted from the VF Additional Equity Contribution.
Village Farms continues to seek the cancellation of 5,940,000 common shares of Pure Sunfarms that were placed in escrow pending payment by Emerald of its related equity contribution (the “Emerald Share Cancellation“), which was not made as required. It is Village Farms’ position that the Emerald Share Cancellation is expressly provided for in the applicable legal agreements.
“Due to the arbitration process related to the Emerald Share Cancellation taking significantly longer than originally anticipated, and with the resulting number of incremental shares for our $5.94 million equity contribution unknown, we decided to reduce the number of items in dispute in an effort to bring the matter to resolution sooner for Village Farms and its shareholders,” said Michael DeGiglio, CEO, Village Farms. “In addition, as a result of the $5.94 million cash refund to Village Farms, we anticipate that Pure Sunfarms may call for additional equity contributions by each of Village Farms and Emerald.”
If Village Farms is successful in the arbitration and Emerald’s escrowed shares are cancelled, Village Farms would own 53.5% of Pure Sunfarms and Emerald would own 46.5% effective as of November 19, 2019. Village Farms expects a decision from the arbitration panel during the second half of 2020.
Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). Forward-looking statements may relate to Village Farms’ future outlook or financial position and anticipated events or results and may include statements regarding the financial position, business strategy, budgets, litigation, projected production, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving Village Farms and Pure Sunfarms. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for Village Farms, Pure Sunfarms, the greenhouse vegetable industry or the cannabis and hemp industries are forward-looking statements. In some cases, forward-looking information can be identified by such terms as “outlook”, “may”, “might”, “will”, “could”, “should”, “would”, “occur”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue”, “likely”, “schedule”, “objectives”, or the negative or grammatical variation thereof or other similar expressions concerning matters that are not historical facts.
Although the forward-looking statements contained in this press release are based upon assumptions that management believes are reasonable based on information currently available to management, there can be no assurance that actual results or events will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond Village Farms’ control, that may cause Village Farms’ or the industry’s actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the factors contained in Village Farms’ filings with U.S. and Canadian securities regulators, including as detailed in Village Farms’ annual information form and management’s discussion and analysis for the year-ended December 31, 2018 and for the three and nine-month periods ended September 30, 2019.
When relying on forward-looking statements to make decisions, Village Farms cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future results, events, performance, achievements, prospects and opportunities. The forward-looking statements made in this press release only relate to events or information as of the date on which the statements are made in this press release. Except as required by law, Village Farms undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Village Farms International, Inc.
Canada House Wellness Group Announces Results of Annual General Meeting and Issuance of Stock Options
Canada House Wellness Group Inc. (CSE: CHV) (“Canada House” or the “Company“) is pleased to announce the results of the company’s Annual General Meeting of shareholders that was held in Fredericton, New Brunswick on Thursday, December 19, 2019, where two business items were presented and approved by the shareholders in attendance.
The Directors of the Company that were nominated at the meeting – Norman Betts, Chris Churchill-Smith, Shawn Graham, Gaetan Lussier, and Dennis Moir – were elected to hold office until the next Annual General Meeting of Shareholders, or until their successors are elected or appointed.
In addition, Ernst & Young LLP were appointed as auditors of the Company for the following year and the Directors were authorized to fix their remuneration.
The business summary presented at the Annual General Meeting is available on the Investor Centre section of Canada House’s website at https://canadahouse.ca.
The Company is also pleased to announce the immediate granting of 500,000 stock options to senior employees and advisors at an exercise price of $0.05 and with a term of 5-years. The grant was made in accordance with the Company’s stock option plan and the policies of the Canadian Securities Exchange.
SOURCE Canada House Wellness Group Inc.
Canopy Growth Revises Beverage Launch Timeline
Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED), (NYSE: CGC) submitted its final documentation for its beverage facility to Health Canada in late June 2019 and subsequently received the licence in late November 2019. In the seven weeks since receiving the licence, the Company has made meaningful progress towards scaling the production process for its cannabis beverages from lab scale to commercial scale.
Management remains very confident in the underlying beverage science and in its ability to scale production and deliver high quality, differentiated cannabis beverages to the market. However, the scaling process is not complete, and the Company is extending its to-market date while the internal teams complete the final steps.
“Canopy has had seven weeks to work with THC in the brand new beverage facility to scale processes and IP it has developed in the R&D environment,” said David Klein, CEO, Canopy Growth. “In order to deliver products that meet our customer’s high standards we are electing to revise the launch date while we work through the final details.”
Cannabis beverages have disruptive power and in time, may introduce new consumers to the cannabis category. Canopy does not believe this delay will have a material impact on its FY20 revenue.
The Company intends to provide an update with the release of its Q3 FY20 financial results.
Here’s to Future (Cannabis Category) Growth.
SOURCE Canopy Growth Corporation
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