It’s official: the maker of Arizona Tea enters the cannabis market, starting with vape pens and THC-infused gummies.
Partnership with Dixie Brands
Arizona Beverage announced they reached a licensing deal with Dixie Brands, which makes and sells cannabis-infused drinks, chocolates, gummies, and topical creams. Through the partnership, Dixie, which operates in six U.S. states, will manufacture and distribute products branded with Arizona’s name. The products will be sold through licensed dispensaries.
The deal allows Arizona to purchase up to a $10 million stake in the cannabis company.
Arizona’s Expansion into Cannabis
Arizona Beverage’s namesake iced teas are sold at convenience stores and supermarkets nationwide, including 7/11s, Walmarts, and Walgreens, which might indicate cannabis products are edging closer to the mainstream. The agreement is one of the first examples of a major consumer company entering the cannabis market.
“We maintain our independence to lead and seize opportunities like this,” said Don Vultaggio, chairman of Arizona Beverages. “Cannabis is an ideal space to infuse AriZona’s flavor and fun into exciting new products.”
Other Beverage Brands in the Cannabis Industry
Other beverage brands have also been dipping their toes into the cannabis industry. In 2017, Constellation Brands announced a nearly 10% stake in Canopy Growth Corporation. Later, they increased the investment by another $4 billion. California-based Lagunitas Brewing, owned by Heineken, also launched cannabis-infused sparkling water to be sold in select California locations.
However, Arizona may have more leeway to take this step as a private company. Although cannabis is legal for recreational use in 11 states and medical use in more than 30 states, it remains prohibited by federal law. This means it can’t be transported across state lines.
Leave a Reply