Creso Pharma Limited, LGC Capital Ltd, and Baltic Beer Company Ltd have signed a Binding Letter of Intent to develop and market a bespoke portfolio of cannabis and hemp derived alcoholic and non-alcoholic beverages.
The international JV’s products will contain various ingredients, seeds, extracts and terpenes from hemp and cannabis plants.
Research and development work has already started in Switzerland, Estonia and the UK on a premium craft beer range containing unique terpenes mixes mimicking the terpenes of the cannabis plant.
Terpenes are essential oils (organic compounds) found in plants that carry flavour and aroma. The terpenes in the beer will carry the characteristic odour and fragrance of cannabis with the same taste and feel but will not contain THC or CBD or any other cannabinoids.
The terpene mixes used to formulate the beers will have the smell and aroma of cannabis but in reality they originate from other plants mimicking the special mixtures. This is a huge advantage as it gets around the issue of regulatory restrictions.
“This new joint venture combines Creso Pharma’s cannabis and hemp expertise with the prestigious and multiple award-winning beer creators, Baltic Beer Company, to develop and provide consumers with innovative, high quality hemp and cannabis-derived beverages. Through the vast geographic reach of the three parties which spans a number of continents, future commercial and distribution partners have already been identified and are eagerly anticipating this innovative new range of drinks,” said Creso Pharma’s CEO and Co-Founder, Dr Halperin Wernli.
“The JV companies have already identified potential distribution partners in Europe, far East Asia, Central and Latin America, Canada, Africa and with the recent legalisation of hemp seed-based food and drink products in Australia and New Zealand, partners have been identified in this region as well,” he said.
Further research and development will identify other opportunities within the legal framework of the target markets, which focus on a range of premium beers containing cannabis and hemp derived components.
The joint venture partners plan to expand their portfolio into other alcoholic and non-alcoholic beverages with further announcements being made in due course. The Joint Venture will only market and sell its products with full compliance with local market regulations and only after securing all appropriate regulatory approvals.
“The cannabis infused beverage industry is an emerging and growing industry and we see a lot of potential value in this market. We also note Constellation Brands’ recent minority stake in Canada based Canopy Growth Corporation which clearly signals real interest in this sector from much larger, established and more traditional business,” said John McMullen, CEO of LGC Capital Ltd.