Cannabis Joint Venture Looks To Capitalize On Marijuana Beverages As Growing Alternative To Alcohol

Flora Growth Corp. FLGC has formed a joint venture with Althea Group Holdings AGH to debut in the booming hemp-derived beverage market.

What Happened

Peak USA JV LLC is designed to capitalize on current commercial opportunities in the beverage market in the U.S.

It will utilize and combine Flora’s U.S.-based CPG team with Althea’s Peak Processing Solutions – which is a recognized operator in the cannabis-infused beverages space. Peak has a 40% market share in Canada.

Moreover, the new collaboration will combine Flora’s brand-launching expertise with Althea’s processing experience to "produce the next generation of beverages for the U.S. market," Flora said in a press release.

See also: Cannabis Beverages At Liquor Stores? Largest Wine Retailer In US, Selling $6B/Year, Adding THC To The Menu

Why It Matters

Flora Growth CEO Clifford Starke explained what the new partnership with Althea means for the company.

“Aligning with Althea instantly bolsters our credibility within the beverage sector," Starke said. "Their very special, world-class emulsion technology has established the very foundation of this category. Coupled with our expertise in brand development, sales, and marketing, this partnership will position us as a frontrunner in the market, setting a standard that competitors will find challenging to emulate."

Cannabis As An Alternative To Alcohol

Starke said, their goal is to provide an "alternative to alcohol," and "establish a nationwide brand.”

Just recently, the number of people consuming cannabis daily or almost daily has overtaken those who drink alcohol with the same frequency for the first time in U.S. history, according to a new study published in the journal Society for the Study of Addiction.

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Joshua Fegan, Althea’s CEO and managing director seconded Starke. "With our combined expertise and shared vision, we are poised to drive success and create lasting value for our stakeholders,” he said on Tuesday.

Flora recently signed an exclusive distribution agreement with Althea Group Holdings for Vessel brands in the United Kingdom and also entered an exclusive distribution agreement with Me Raw Trade Ltd. to distribute both JustCBD and Vessel-branded products in Poland.

Now read: Are Hemp-THC Beverages Competing With Alcohol? Experts Discuss New Alternatives For Adult Beverages At Benzinga Cannabis Conference

FLGC Price Action

Flora Growth's shares traded 2.50% lower at $1.17 per share at the time of writing on Tuesday morning.