Weed Week: Cannabis-infused drinks market could reach US$2.8 billion by 2025
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Peak processing Solutions will research and develop various product formulations and recipes for the new line of products – with BBC providing funding of up to US$2 million.
Plus, Peak will receive a minimum of US$285,000 for each year over the five year term of the agreement (totalling US$1.42 million)
Apparently, infused cannabis beverage sales are going gangbusters.
Althea said a recent report by Million Insights estimated that the cannabis beverage market will grow at a CAGR of 17.8% from 2019 to 2025 to reach US$2.8 billion.
The report found that the growth is being driven by a range of factors including the rise of the health and wellness movement and the preference for cannabis beverages among millennials.
“This project is further validation of Peak’s significant and unique capabilities in the recreational cannabis industry and the latest in a growing list of deals Peak has signed with high quality customers, including seven North American publicly listed companies,” Althea CEO Josh Fegan said.
“AGH is very optimistic about the cannabis-infused beverage category and Peak remains well positioned to capitalise on the recreational cannabis boom in general.”
Southern Cross University has commenced a clinical trial investigating the efficacy of an over-the-counter botanical CBD product to help with sleep disturbances in a healthy population.
Funded by Aussie hemp company Ecofibre (ASX:EOF) the trial will compare the effects of its Ananda Hemp CBD extract to a placebo on participants’ self-reported changes in sleep disturbances.
“Currently there are no registered CBD products that pharmacists can dispense, even though it has been rescheduled and thus approved for over-the-counter sales,” clinical trials fellow Dr Janet Schloss said.
“Additionally, no clinical trials on low-dose CBD have been undertaken to see what amount works for sleep disturbances.
“Trials like this will add to the current evidence for pharmacists, doctors and patients which is important moving forward in this space.”
Despite the super cool cannabis-beverage announcement, Althea wasn’t the biggest winner this week – only up 9%.
The largest movement was Ecofibre, up 34%, proving that people take their sleep (or lack of) seriously.
The next cab off the ranks was Wellfully Limited (ASX:WFL) which was up 33% after releasing its 2021 financial report which detailed CBD supply difficulties have resulted in delays in its collaboration with Dolce Cann Global to explore transdermal CBD delivery technologies.
It was followed by MGC Pharmaceuticals (ASX:MXC) which rose 27% off the back of its annual report which showed record cumulative sales of phytocannabinoid products in FY21 – with 12,457 units sold worldwide totalling around $2 million in revenue.
Engage:Bdr (ASX:EN1) jumped 13% even after announcing H1 21 revenue dropped 4.6% to $7.7 million – but that company said that’s ‘cos the Aussie dollar strengthened, so don’t worry once you transfer it to USD, they’re actually up 12%.
Plus, the company also successfully imported its first shipment of 50kg of the ‘Billy Buttons’ THC 16 cannabis flower medicine from its recently-acquired Danish Facility into Australia – in just over two months since acquisition.