New Facility Utilizes Established Technology to Enhance Product Quality and Competitiveness in the Growing THC-Infused Beverage Industry
October 22, 2024 8:20 AM EDT | Source: Flora Growth Corp.
Fort Lauderdale, Florida — Flora Growth Corp. (NASDAQ: FLGC) (FSE: 7301) (“Flora” or the “Company”) announced the successful completion of its specialized beverage facility, along with the necessary permitting, meeting both time and budgetary requirements. This achievement marks a significant step for Flora’s entry into the beverage market.
Proven Technology Adapted to the U.S. Market
“The introduction of our new specialized beverage facility represents a strategic move for Flora and the broader U.S. beverage industry,” stated Clifford Starke, Chief Executive Officer. “By integrating the established technology from Peak, we are committed to ensuring top-tier quality in our products while gaining a competitive edge. This facility empowers us to respond swiftly to market demands, enhancing our presence in the sector. Our vision is to replicate Peak’s successful Canadian business model in the United States.” With a capacity for over 100 formulations, the Company aims to support prominent brands within the cannabis industry.
Peak estimates that it currently produces nearly 40% of all cannabis beverages available in Canada. The segment of THC-infused beverages is rapidly expanding within the cannabis space, representing approximately 2.1% of the adult-use cannabis market in Canada, equivalent to around CAD$134.4 million.
A Growing Demand for Alternative Products
Mr. Starke observed, “The entry of multi-state operators into the cannabinoid industry underscores the significant opportunities present in the hemp and cannabis markets. Premium retailers like Total Wine and ABC are now dedicating sections to THC-infused products, reflecting the booming sector ripe for beverage innovations.”
According to Headset Data, beverages currently occupy only 1% to 3% of the U.S. cannabis market, indicating vast potential for growth. Beverages are gaining traction as a popular alternative to traditional alcohol consumption. Data Bridge Market Research projects that the U.S. infused beverages market is anticipated to reach half a billion by 2030, exhibiting a CAGR of 14.7% during the forecast period.
As the demand for THC-infused beverages rises and consumers seek alcohol alternatives, product quality and consistency will be critical differentiators. Flora’s specialized facility is designed to meet these expectations by delivering beverages with enhanced stability, faster onset times, and superior overall consumer experiences.
Future Outlook: Expansion and Market Influence
“The completion of our specialized beverage facility signifies a new and promising chapter for Flora. We are now equipped to introduce a range of beverages that surpass consumer expectations,” stated Clifford Starke, Chief Executive Officer.
With the completion of this facility, Flora is prepared to scale up production and accelerate its presence in the U.S. THC-infused beverage market. The facility will support the Company’s Melo brand and other upcoming brands, as well as facilitate strategic distribution partnerships.
In June 2024, Flora entered into a joint venture with Peak, aiming to leverage combined strengths and resources to capitalize on commercial opportunities within the U.S. beverage market. Peak brings production expertise, while Flora contributes significant brand launch, sales, and marketing experience within the U.S. lifestyle brands landscape. Through its e-commerce platform serving over 350,000 customers and an extensive business-to-business distribution network, Flora has successfully introduced popular gummies, edibles, vapes, and accessories in the U.S.
Forward-Looking Statements Disclaimer
This press release contains forward-looking statements that reflect Flora’s current expectations and projections about future events, involving uncertainties and risks. These statements should be read in conjunction with the cautionary statements in this release and Flora’s filings with the SEC. While forward-looking statements reflect Flora’s beliefs, they are not guarantees of future performance, and the Company disclaims any obligation to update or revise these statements based on new information or changes.
To read the original version of this press release, visit https://www.newsfilecorp.com/release/227385
