Arizona Beverages Co. is partnering with a Denver based cannabis company known for their marijuana infused drinks, chocolates, gummies and topical creams.
The makers of Arizona Tea have decided to get involved with the cannabis industry by developing their own THC-infused products.
The news was made public on Tuesday, when Arizona Beverages Co. announced their licensing deal with Dixie Brands, a Denver based cannabis company known for their marijuana infused drinks, chocolates, gummies and topical creams. According to CNBC, this deal would give Arizona the right to buy a stake up to $10 million in the cannabis company.
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Dixie will manufacture and distribute the products with the Arizona Beverage brand. At first, these will be available for purchase on licensed dispensaries across legal states in the US. Later, depending on sales and public reception, the products will expand to Canada and Latin America.
“The cannabis market is an important emerging category, and we’ve maintained our independence as a private business to be positioned to lead and seize generation-defining opportunities exactly like this one,” Don Vultaggio, chairman of Arizona Beverages, told the Wall Street Journal. “The cannabis category is an ideal space to bring the flavor and fun of Arizona into new and exciting products.”
Arizona Beverages’ involvement with the cannabis industry makes it one of the first instances when a large private company openly embraces cannabis, unlike many of their competitors who are waiting for the drug to be legalized on a federal level. “You’ve got to be willing to try things,” said Vultaggio. “The upside is we’re one of the first ones in an emerging space.”
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As one of the most popular drink makers in the U.S., Arizona Beverages holds a large influence, having products in Walmarts, Targets and hundreds of other convenience stores throughout the country. Their decision to get involved with the cannabis industry signals that marijuana is beginning to be perceived as an investment over a gamble.
