CBD Beverages Prepare To Go Mainstream
It's only natural that the popularity of CBD has spread to other consumer products, in particular, CBD beverages. A couple of announcements this week by some of the names in the space show CBD beverages are about to become a lot more widespread across the U.S.
Canopy Growth Corporation announced earlier this week that it's launching its CBD-infused sparkling water, Quatreau, in the U.S. following a successful launch in Canada. The drink has become the top-selling ready-to-drink CBD beverage since its rollout last year.
The drink contains 20 mg of hemp-based CBD and comes in four different flavors—Cucumber + Mint, Passionfruit + Guava, Ginger + Lime and Blueberry + Acai. The drink is sugar-free and retails for $3.99 per 12-ounce can.
"We have proven our beverage strategy in Canada, where we are currently the market share leader in CBD-infused ready-to-drink beverages," Canopy Growth President and Chief Product Officer Rade Kovacevic said. "Beverages are fueling growth in the CBD category and we believe this product will resonate with U.S. consumers looking for a naturally flavored, zero sugar option."
Also this week, Green Thumb Industries announced an exclusive partnership with cannabis-infused beverage brand Cann to manufacture and distribute its line of drinks. Cann, which is the top-selling THC-infused beverage in California, will see Green Thumb begin distribution in Illinois this spring followed by additional markets that have recently legalized adult-use cannabis sales such as New Jersey.
Cann's drinks contain micro-doses of cannabis CBD and THC extract designed to be similar in strength to a glass of wine or a light beer. The drinks come in three different flavors—Lemon Lavender, Grapefruit Rosemary, and Blood Orange Cardamom, and are sold in 6-packs of 8 ounce cans.
"The cannabis beverage category is poised for growth. Consumers are increasingly entering the market seeking alternatives to alcohol with familiar consumption experiences," Green Thumb founder and CEO Ben Kovler said. "Cann sits squarely in this opportunity, delivers on the consumer need, and complements our brand portfolio with entry into the beverage segment. What's even better is cannabis drinks can offer a superior experience, fewer calories and no hangover compared to alcohol."
With cannabis legalization expected to continue across the U.S., the CBD beverage category is likely to see a boost in popularity in the coming years.
Hippo to go public in SPAC deal. Hippo Enterprises, which sells homeowners insurance online, is going public through a merger with Reinvent Technology Partners Z in a deal giving the company an enterprise value of $5 billion. Hippo Insurance Services are currently available in 32 states, reaching more than 70% of the U.S. population, as the company expects to reach 95% of the U.S. population by the end of 2021. "Through this strategic partnership with Reinvent and an incredible team of world-class entrepreneurs, investors, and employees, we can't wait to transform the homeowner experience and accelerate our growth," Hippo co-founder and CEO Assaf Wand said.
Amazon accused of copying popular camera bag. Amazon has been accused of copying a popular product by the CEO of Peak Design, which makes a top-selling premium camera bag. Peak Design introduced the popular "Everyday Sling" bag in 2017 while Amazon introduced a similar "Amazon Basics Everyday Sling" bag in October for a third of the price. "It feels like somewhere in Amazon there's a bell that goes off, which says 'OK, this one's going to be worth our time to go make the knockoff," Peak Design CEO Peter Dering said in an interview. "And that sort of finally happened to us." Amazon declined to comment on the accusations.
Walmart looks to take Flipkart public. Walmart is reportedly in talks to take its Indian e-commerce company Flipkart public in the U.S. A merger with a SPAC or a more traditional IPO are among the potential methods Flipkart could be taken public. "We have been clear that we support an IPO for Flipkart, but we have not made any decisions on timing, listing venue or methodology," a Walmart spokesperson told Reuters. Shortly after acquiring a roughly 77% stake in Flipkart for about $16 billion in 2018, Walmart said that it could take Flipkart public in four years.
UFC and DraftKings strike deal. UFC and DraftKings have agreed to a deal where DraftKings will become UFC's first "Official Sportsbook and Daily Fantasy Partner" in the U.S. and Canada. DraftKings will now be able to offer in-game promotions, activations, in-broadcast odds integrations and UFC branding across its daily fantasy and betting products. "This is a massive deal that will benefit UFC, DraftKings, and most of all the fans," UFC president Dana White said. "DraftKings is the best at what they do in the betting and daily fantasy space, and unlike other sports, UFC has no off season. The action will be non-stop for fans of UFC and DraftKings."
Deliveroo to list in London. Food delivery startup Deliveroo, which counts Amazon among its investors, announced it has chosen London as the venue for a future listing. Information on the timing and pricing of the offering haven't been disclosed but Deliveroo was most recently valued at more than $7 billion. "Deliveroo was born in London. This is where I founded the company and delivered our first order," Deliveroo founder and CEO Will Shu said. "London is a great place to live, work, do business and eat. That's why I'm so proud and excited about a potential listing here."