Cannabis-based medicines and recreational cannabis products developer Althea Group Holdings Limited (ASX:AGH) reports that its wholly-owned subsidiary, Peak USA is advancing its entry into the United States cannabis beverages market.
It said Peak USA has made significant strides in expanding its production and distribution capabilities within the US. The recent establishment of a dedicated emulsion lab in Florida marks a key milestone, enabling the manufacturing of Peak Processing Solutions’ proprietary cannabis emulsion, Envision.
While the emulsion acts as a carrying agent, it plays a crucial role in delivering THC, the active ingredient, in its US made cannabis beverages. This facility is essential to maintaining the high standards of product quality that align with Peak Processing Solutions’ operations in Canada.
Product details
Initial production at Peak USA will focus on its previously announced joint venture with Flora Growth Corporation. This project includes a range of cannabis-infused beverages under two distinct brands. Melo, the JV’s seltzer brand, will offer three refreshing flavours: Wild Berries, Grapefruit, and Strawberry, each containing 5mg of THC. Additionally, the Cloud Cola soda brand will introduce three classic flavours: Vintage Cola, Root Beer, and Orange Creamsicle, each containing 10mg of THC.
Launch timeline
Sales of these innovative beverages is expected to launch online in September 2024 via Flora’s well- established e-commerce platform, which serves over 350,000 registered customers. Simultaneously, the JV is actively negotiating with several distributors in strategic US states, including Florida, Texas, Georgia, South Carolina, and North Carolina.
The company is confident that these discussions will lead to widespread distribution agreements, significantly expanding its market reach to include liquor stores soon.
Market opportunity
The US cannabis beverages market presents a significant growth opportunity for the company. The US cannabis beverages market, valued at US$966.92 million in 2024, is projected to grow at a CAGR of 54.30% to reach US$19.06 billion by 2028.