Arizona Iced Tea is the latest food brand to dive into the cannabis business. More specifically, Arizona Beverage Co. – the company that produces the popular drink – recently announced its partnership with Dixie Brands, a marijuana company based in Denver.
Through the partnership, Arizona Beverage Co. is looking to create a line of cannabis-infused products, including gummies and vape pens, according to The Wall Street Journal. While the deal is still subject to approval from Dixie’s board of directors, the gummies and vape pens will likely be followed by a variety of pot-laced drinks, including tea, lemonade, soda, coffee or seltzer.
Unlike the CBD-infused food products that have been popping up left and right in recent months, Arizona Beverage Co.’s offerings will include THC. In other words, the candies and beverages will get consumers high.
Should the deal go into effect, Dixie would manufacture the Arizona-branded products and sell them at licensed dispensaries in California, Colorado, Maryland, Michigan and Nevada. Dixie then hopes to expand its offerings to other states as well as Canada and Latin America, as legally allowed.
“Arizona is a power brand 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,” said Dixie Brands CEO, Chuck Smith, in a statement. “This partnership marks a watershed moment for the popularization and expansion of the cannabis sector overall.”
Added Arizona’s chairman and CEO, Don Vultaggio: “You’ve got to be willing to try things. The upside is we’re one of the first ones in an emerging space.”
Again, while brands such as Ben & Jerry’s and Coca-Cola are in the process of exploring the idea of CBD-infused foods, edibles that contain THC are much less common, partially because cannabis is still prohibited by federal law.
Heineken NV’s Lagunitas brewery worked with a California cannabis company to launch a THC-infused sparkling water in 2018, but it is only currently available in the Golden State, where adult-use marijuana is legal. Furthermore, Corona brewer Constellation Brands Inc. and Coors Light brewer Molson Coors Brewing Co. are in the process of developing marijuana drinks in Canada, but are waiting for cannabis to be legalized at the federal level before bringing them stateside.
While Arizona’s partnership with Dixie Brands has yet to be finalized and the timeline beyond that is unclear, the beverage producer hopes to get its pot-laced products to the market as soon as possible.
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