William SumnerThe Green Organic Dutchman Holdings Ltd. (TGOD) is getting into the beverage businesses. On June 6, 2018, the company announced the official launch of its global division focused solely on the beverage industry, appropriately named The Green Organic Dutchman Beverage Division. Recognizing the similarities between the beverage industry and the cannabis industry, TGOD’s new division will focus on the creation of branded products and supplying organic ingredients for global beverage brands.
As cannabis prices are expected to fall over the next several years, many companies are seeking to enhance their revenue through the creation of value-added cannabis products, such as infused beverages. In particular, the hemp and CBD market is poised for explosive growth, with some estimates predicting that the market will grow to over $2 billion by 2020. With the significant potential for cannabinoid-infused beverages, several major players in both the alcohol and cannabis industry have already started making moves in that direction.
Late last year Constellation Brands (STZ), the company behind famous beer brands such as Corona and Modelo, announced that they would purchase a 9.9% stake in Canopy Growth Corp., which at the time was worth around $191 million.
After a strong Q4 report from Canopy, Constellation doubled down on their investment and announced that they would spend an additional $20 million on Canopy for investments in resources to build brands, personnel, opening new markets, as well as digital and e-commerce efforts. Not to be left out of what could be a booming market, TGOD is currently developing a 40,000 square foot research and development center, including space for product development and pilot manufacturing, to create novel and proprietary cannabinoid infused beverages.
“TGOD will utilize state-of-the-art R&D facilities, intellectual property and a leadership team with more than 125 years of CPG beverage experience. We will create unique, healthy and organic products for the recreational and medicinal markets,” said TGOD President, Csaba Reider in a statement. “We have the best access to capital, organic production capabilities and R&D resources in the world.”
