Recreational use legalization marked an important milestone in Canada’s cannabis landscape in 2018. Fast forward, the cannabis market is yet again on the cusp of receiving a significant boost, on the legalization of CBD infused beverages later this month.
BevCanna Enterprises Inc. (CSE:BEV) is one of the companies well-positioned to capitalize on the new opportunity, valued at over $4.5 billion. However, the company faces stiff competition for opportunities in the emerging market, as companies continue to invest vast sums of money in anticipation of strong demand for CBD beverages.
BevCanna CBD Beverage Competition
BevCanna Enterprises is well-positioned to take on, Canopy Growth Corp. (TSX: WEED) HEXO Corp. (TSX:HEXO) and CannTrust Holdings Inc. (TSX: TRST) on CBD beverages for good reasons. For starters, the company already enjoys a head start on the fact that it is already developing and manufacturing cannabinoid-infused beverages for in-house brands.
Backed by a state of the art 40,000 square foot certified manufacturing facility, the company should be able to produce up to 72 million bottles of CBD infused beverages a year at full capacity. The company has also inked an agreement with Higharchy Ventures to develop and launch a portfolio of CBD brands for distribution in Canada.
In addition, BevCanna has entered into an exclusive supply agreement with Nextleaf solutions. The agreement grants BevCanna access to intellectual property pertaining to the development of water-soluble cannabinoids. BevCanna plans to leverage Nextleaf technology in the development of formulations to cater to the emerging opportunity in the CBD beverage market. The patented extraction process at stake should allow the company to produce odorless and tasteless CBD beverages with superior taste and consumption experience.
In addition, the company has already inked a deal with Clearwater CannGrow to grow cannabis on a 130-acre plot. The grow operations should allow the company to enjoy a constant supply of marijuana needed for the production of CBD infused beverages. The company expects over 100,000kg of biomass from the farm, which should lead to over 10,000kg of pure cannabinoids. The production spree should allow the company to become a global leader in the production of high-quality cannabis products.
BevCanna CBD Infused Beverages Competitors
However, for BevCanna to succeed in its push for opportunities around CBD beverages, it will have to shrug off stiff competition from Canopy Growth Corp. (TSX: WEED). The company is billed as one of the biggest cannabis players for good reasons. For starters, it boasts of a portfolio of ten licensed cannabis production sites that support a cannabis production capacity of over 4.3 million square feet.
Canopy Growth’s competitive edge on CBD beverages will stem from its partnership with Constellation Brands, Inc. (NYSE: STZ). The two are joining forces to develop a line CBD infused beverages. With the company planning to spend close to $150 million on a hemp industrial park, there is no doubt it will be one of the biggest players in the production and distribution of CBD infused beverages.
Just like BevCanna, CannTrust Holdings Inc. (TSX: TRST) is another small-cap cannabis player looking to make a name for itself on the production of CBD infused beverages. While the company is on course to produce over 100,000kg of cannabis a year, it is a must watch given the proprietary technology on its possession.
CannTrust is currently pursuing a patent for groundbreaking nanotechnology that it plans to use to produce tasteless/colorless /odorless CBD/infused beverages. In addition, the company boasts on its arsenal of technologies Brewbudz, a technology ideal for the production of CBD infused coffee and tea.
HEXO Corp. (TSX:HEXO) should pose significant competition in the race for CBD infused beverages market share . The company has already inked a partnership with Molson Coors Brewing Company to develop CBD infused beverages for the Canadian market. As part of the joint venture, the combined company will boast of proven beverage experience in the fast-growing sector.