CBD-infused beverage maker, BevCanna Enterprises, has announced plans to form a joint venture with Calexo, which will see it will become exclusive Canadian manufacturer of the Californian firm’s line of cannabis beverages.
Los Angeles-based beverage brand Calexo launched its first sparkling cannabis drinks in the US earlier this year.
As part of the proposed deal, BevCanna will be responsible for maintaining compliance with Health Canada and will manufacture and distribute Calexo’s products nationally.
The agreement will also see Calexo provide BevCanna with access to its US distribution networks for future product launches.
John Campbell, BevCanna’s chief strategic officer, said: “The partnership with Calexo is an exciting opportunity for BevCanna.
“Calexo combines unique branding, all-natural ingredients and flavour-forward formulations to create elegant, social beverages.
“These drinks represent the type of high-quality products that BevCanna is committed to bringing to the Canadian market. We look forward to a prosperous partnership that results in continued growth for both partners.”
The proposed agreement currently takes the form of a non-binding letter of intent (LOI) signed by the parties.
It is subject to a number of conditions, including the satisfactory completion of due diligence investigations by each of the companies into its proposed partner’s business.
The venture will be for an initial term of five years with a subsequent five-year renewal option.
News of the proposed partnership follows the announcement, in February, that BevCanna plans to form a joint venture in Europe with Vancouver-based cannabis company Mota Ventures.
© FoodBev Media Ltd 2020