Cannabis infused Ice Tea and more will soon hit the masses, as the maker of Arizona Tea enters the cannabis market, starting with.. get this, vape pens and THC-infused gummies.
Privately held Arizona Beverage announced that it reached a licensing deal with Dixie Brands, which makes and sells drinks, chocolates, gummies and topical creams that are infused with THC. Through the partnership, Dixie will manufacture and distribute products branded with Arizona’s name. The products will be sold through licensed dispensaries.
The deal also gives Arizona the right to buy a stake of up to $10 million in the cannabis company.
AriZona Brings Flavor & Fun
“AriZona has always led the way in product innovation,” said Don Vultaggio, Chairman, AriZona Beverages. “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.
The Cannabis category is an ideal space to bring the flavor and fun of AriZona into new and exciting products, and we selected Dixie Brands as our partner to bring these products to market after touring their best in class manufacturing facilities, and spending considerable time building a strong relationship with their management.
Both companies share a heritage of quality, excellence in manufacturing, and doing things the right way, and we look forward to all this partnership has in store.”
Dixie Brands The Leader in Cannabis Infused Products
“AriZona is a power brand,” said Chuck Smith, CEO Dixie Brands, “and the most iconic and recognized CPG brand to extend into the cannabis market, providing the evolving cannabis consumer with a fun and flavorful experience alongside an iconic brand they know and love.
For nearly a decade Dixie Brands has crafted award-winning cannabis-infused products creating some of the most recognized and trusted brands in the industry, and we are thrilled to have found a partner that shares our values.
Other Beverage Companies Flocking to the Cannabis Space
Other beverage brands have also been dipping their toes into the marijuana space. In 2017, Corona beer maker Constellation Brands announced a near 10% stake in Canopy Growth Corporation, the world’s largest publicly traded cannabis company, and it increased the investment last year by $4 billion. California-based Lagunitas Brewing, owned by Heineken, also launched cannabis-infused sparkling water to be sold in select California locations. This is just the tip of the iceberg