PALM BEACH, Florida, April 4, 2019 /PRNewswire/ -- Willie Sutton, the infamous bank robber, when he was asked why he robbed banks, answered: "because that's where the money is." Today, smart marketers are "going where the money is" in the infused product markets. A recent report from respected industry researcher, Brightfield brought Sutton's observations into the 21st century infused product marketing strategies. It said: "How many adults do you know who eat gummy bears?" said Paul. "When you go out with friends, what do you do? You drink something." Imagine you're at your closest friend's house to unwind after work one afternoon, and she asks you what you'd rather drink —a glass of rosé, or herbal tea infused with whole plant cannabis. Or you're running late for work, and realize you forgot to take your dose of cannabinoids. Rather than rub your achy shoulder all day, you sip your morning cannabis-infused coffee during a meeting, knowing the discreet drink will get you ready to take on the day. Seem a bit far-fetched? Not to emerging cannabis manufacturers who are reimagining the industry. Morning coffee, going for a beer with friends—these are the everyday adult rituals cannabis drinks manufacturers are elbowing their way into. Cannabis-infused drinks are one of 19 distinct subcategories of goods that contain marijuana flower or extracts from it, with a 2017 market value of $163 million. Brightfield Group projects drinks sales will grow by more than 250% by 2021—double the growth rate of flower itself. In addition to coffee and tea, cannabis can be found in sodas, energy drinks and shots, lemonade, punch, and everything in between. Coffee drinks, sans cannabis, are already a $37 billion-dollar industry in the US, and now marijuana manufacturers are aiming to get in on the game. Active companies in the industry making moves to ready that include: IONIC Brands Corp., (CSE: IONC), SLANG Worldwide Inc. (CSE: SLNG) (OTC: SLGWF), Plus Products Inc. (CSE:PLUS) (OTC: PLPRF), Canopy Growth Corporation (NYSE: CGC) (TSX: WEED: TO), Green Growth Brands Inc. (OTC: GGBXF) (CSE: GGB).
Coffee and tea are outliers in the edibles industry—which is dominated by baked goods, chocolate, candy, sugary drinks, and salty snacks—in terms of being low calorie and low sugar. There is already a sizeable niche of cannabis consumers who are health-conscious, want quality ingredients, research their products well, and—good news for product manufacturers—greatly outspend other user segments, as Brightfield Group discovered in recent consumer surveys.
IONIC Brands Corp., (CSE: IONC) BREAKING NEWS: IONIC Brands is pleased to announce that the Company is advancing into the cannabis-infused beverage market with two highly sought-after coffee patents.
IONIC BRANDS is entering into the infused beverage market with secured patents in the single-serve coffee and beverage pod market. CEO John Gorst states "single–cup coffee is a +$4.5 billion market and the National Coffee Association has estimated more than 40% of Americans own a single-cup coffee maker. Securing these patents is a great foundation for IONIC BRANDS to enter into the cannabis-infused beverage industry and is complementary to our current premium luxury Cannabinoid products. We also see substantial development potential of new revenue streams through licensing infused coffee and tea brand partnerships."
As recently announced on April 2, 2019, the patents position IONIC BRANDS to exclusively benefit from patented technology and provide strategic intellectual assets in the cannabis-infused beverage market, which is anticipated to keep pace or exceed other edible markets. The patents (62/037,827 & 15/837,623) are among the first cannabis patents in US history. These exclusive patents are for brewing cannabis infused coffee, tea and cocoa from CannaCafe which are granted in the US only. Cowen and Company recently released a report in which it pinpoints Starbucks as the likely first major chain that will market products featuring cannabinoids (CBD). Arcview Market Research indicates that "the consumer appeal is propelling concentrates toward an estimated $8 billion in retail sales by 2022, outpacing growth in traditional flower sales."
The original method patent was filed in August 2014 and issued on December of 2017. Since then Imbue LLC, CannaCafe's parent company, has been granted approval for two additional utility patents, one for cannabis coffee, and the other for cannabis tea. The applications cover all commercial based extraction methods including but not limited to CO2, ethanol, and heat. Their ISO certified product is tasteless, 100% water soluble, and includes known cannabinoids such as THC and CBD. Read this entire announcement for IONC at: https://www.financialnewsmedia.com/news-ionc/
Additional industry related developments from around the markets:
Plus Products Inc. (CSE:PLUS) (OTCQB: PLPRF) recently announced that Jon Paul, a veteran senior corporate finance executive and certified public accountant, has been appointed as PLUS' Chief Financial Officer reporting to PLUS co-founder and CEO Jake Heimark. The Company also announces that Craig Heimark has resigned as the Chief Financial Officer effective immediately and has been appointed as the Chief Strategy Officer, and will remain as Chairman, Secretary and a Director.
"Jon has more than 30 years of experience in senior financial management, including roles as CFO and senior financial consultant at both private and public companies across a number of industries including consumer products, health care, and telecom," said Jake Heimark, PLUS CEO. "When we were recruiting for a senior financial advisor, we met Jon and knew he was the right person to help PLUS develop a disciplined global financial strategy, robust systems and procedures and a strong balance sheet as we scale our business."
Canopy Growth Corporation (TSX: WEED.TO) (NYSE: CGC) recently welcomed Houseplant, a new brand of Canadian cannabis, to the Canopy Growth family today. Founded by Seth Rogen and Evan Goldberg , Houseplant represents years of product expertise and an unmatched attention to detail within each strain that has been carefully selected and grown.
Commitment to cannabis quality begins with selecting the best genetics and doesn't stop until the customer opens the jar. Canopy Growth has witnessed how carefully Houseplant has chosen each component of their offering to deliver the highest quality product to Canadians.
SLANG Worldwide Inc. (CSE: SLNG) (OTCPK: SLGWF) last month launched its Reserve product line in the California market. Reserve further extends the O.penVape brand and complements Slang's existing product line. The new product offering was created in direct response to demand in the market for a curated selection of top strains. Innovative formulations and market-leading prices are at the core of Reserve, adding to an already robust product catalogue. This catalogue has made O.penVape the No. 2 best-selling cannabis brand in the United States since 2014, as reported by BDS Analytics.
As one of the largest cannabis markets in the United States, with recreational sales of $1.2-billion in 2018 per BDS Analytics, California is among Slang's top-grossing territories. Reserve is sold alongside Slang's other offerings like Bakked, California's No. 1 best-selling distillate, and District Edibles, California's third-best-selling gummy brand, reported by BDS Analytics. Presale orders for Reserve sold out across the state, supporting Slang's view that a competitively priced vaporizer cartridge will prove to be an essential piece of the California retail cannabis environment.
Green Growth Brands Inc. (OTCQB: GGBXF) (CSE: GGB) recently announced the opening of its newest Seventh Sense Botanical Therapy CBD shop today at Mayfair Mall in Greater Milwaukee, a Brookfield Properties center. This new location represents the sixth Seventh Sense Shop to open in the United States.
"Mayfair Mall is the premier mall in Greater Milwaukee and we look forward to bringing a remarkable CBD store experience to new customers in the region," said Peter Horvath, CEO of Green Growth Brands. "Physical shops are our strongest marketing assets, and our presence in the new location will drive hundreds-of-thousands impressions with consumers. As we gear-up to open over 100 CBD shops by mid-summer we are pleased with early signs of conversion, repeat purchases and building engagement with our current shops and online with ShopSeventhSense.com."
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