AriZona Beverage and Dixie Brands to Enter Cannabis-Infused Gummies, Drinks and Vape Pens Market

Flavored iced tea, juice cocktails and energy drinks provider, AriZona Beverage Co. signs a licensing deal with THC and CBD-focused company Dixie Brands to start its new journey within the cannabis market. As per the press release, the binding letter has been signed on Friday, August 2, 2019.

This partnership implies Dixie Brands will take responsibility of creating and distributing AriZona’s branded THC-infused goods, while Herbal Enterprises LLC will be the one to focus on the overall branding of this endeavor.

According to the Chairman of AriZona Beverages, Don Vultaggio, the reason for entering the cannabis market stems from the company’s devotion to product innovation; not to forget the cannabis market’s emerging stance. Vultaggio further added that:

“[This] is an ideal space to bring flavor and fun of AriZona into new and exciting products, and we selected Dixie Brands as our partner to bring these products to market after touring their best in class manufacturing facilities and spending considerable time building a strong relationship with their management.”

Vultaggio also spoke to the Wall Street Journal regarding the efforts in place, and was quoted by Ganjapreneur, he said that despite it being a risky move:

“You’ve got to be willing to try things. The upside is we’re one of the first ones in an emerging space.”

Given the battle AriZona has faced with its competitor, Pure Leaf, where the former nearly lost 16.2 percent in market share compared to its 23.4 percent in 2013 and bragging rights of being first on the list of leaders, the company has decided that it needs to up its game in terms of the diversity in products available. That said, this constitutes another reason as to why the cannabis market is being targeted.

As per the CEO of Dixie Brands, Chuck Smith,

“AriZona is a power brand and the most iconic and recognized CPG brand to extend into the cannabis market […] This partnership marks a watershed moment for the popularization and expansion of the cannabis sector overall.”

In relation to the terms of the partnership, it has been established for the upcoming three years, with an option to renew for up to two additional terms of two years.