EXCLUSIVE: The Drinkable Company Invests in Cirona Labs, Forming Cannabinoid Beverage R&D Partnership

In a Benzinga exclusive, Boston-based beverage producer The Drinkable Company is announcing it has made a private investment in water-soluble cannabinoid supplier Cirona Labs.

Why It Matters

The private investment aims to propel both companies into the infused THC beverage space. Beverages are expected to play a substantial role in market growth, with BDSA's 2022 Cannabis Market Forecast projecting that U.S. edibles sales will generate $4 billion this year.

The investment marks a period of growth for The Drinkable Company as it looks to launch a THC-infused beverage across various states. The partnership's first line of drinks is expected to be released this summer.

Why Did The Drinkable Company Invest In Cirona?

Both companies see the potential of the infused beverage space.

Drinkable Company co-founder and CSO Lee Brody said the investment brings together beverage industry professionals in The Drinkable Company with leaders in cannabis emulsions, forming a mutually beneficial research and development relationship.

After meeting the Cirona team, Brody, a 15-year beverage professional primarily working in iced tea, said his company was convinced by the Cirona team's "knowledge, experience, connections and vision for the future of the industry."

Brody elaborated more on the Cirona team. "They've really built something that is truly remarkable," he said of the company. "They don't attack the business as one-size-fits-all, which is what really attracted them to us as a partner."

Brody added that the company was further motivated by the loss of a friend of The Drinkable Co.'s Mark Mahoney to alcohol addiction as a reason to enter the cannabis space.

"Obviously we recognize the opportunity, but there were personal reasons we wanted to enter the space," he said. 

The Infused Beverage Play 

Cirona Labs CEO Hunter Friedland said drinks will be significant in winning consumers, particularly in critical markets like the East Coast. He said the two companies can create products with consistent results, a fast onset and a great taste through the partnership.

"This partnership will leverage our immense knowledge of water-soluble cannabinoids, combined with Drinkable's deep history in the beverage industry to create a diverse range of delicious THC-infused drinks," he said. 

What's Next?

Producing various THC-infused beverage lines is the next step with the investment now in place.

Progress in the Northeast is underway: The Drinkable Company has production agreements in Maine, Massachusetts, and New York.

The company plans to release an array of beverages, including iced teas, sodas, flavored sparkling waters, non-alcoholic beer and cold-brew coffee. Products are expected to be low-dose, featuring 5 milligrams or less of THC per drink.

Brody said that brand details are under wraps as the company completes its trademark process.

He added that the goal is to create one brand to house the much of beverage line, estimating that approximately 90% of products will fall under the to be announced brand. The remaining approximate 10% expects to go into partnerships. Deals are already in place and are yet to be announced, according to Brody.