- Flora Growth recently entered into a licensing agreement to produce and distribute Tonino Lamborghini-branded cannabis beverages across North America and Colombia, with an initial focus on the U.S. market
- The company will produce the product line using molecular tagging and authentication technology that will guarantee product verification and allay concerns of counterfeit products
- Through the licensing agreement, Flora has entered into the cannabis beverages market amid increasing demand for CBD-based products
- The recent agreement follows a November 15 announcement that FLGC had completed the acquisition of Vessel Brand Inc., an industry leader in luxury cannabis consumer technology
Internationally focused cannabis brand builder Flora Growth (NASDAQ: FLGC) recently signed a licensing agreement with Tonino Lamborghini, a luxury brand operating in the high-end designer products, hotel, beverage, and real estate segments. Under the terms of the partnership announced November 29, Flora Growth will produce and distribute Tonino Lamborghini-branded cannabis beverages across North America and Colombia (https://cnw.fm/TEm9L).
The Tonino Lamborghini product line, which will be produced in Florida for initial sale in US states where cannabidiol (“CBD”) ingestible are legal, will contain CBD and other premium cannabinoids, including cannabigerol (“CBG”). In addition, Flora will produce the product line using Applied DNA Sciences, Inc.’s (NASDAQ: APDN) molecular tagging and authentication technology, ensuring product verification and substantially reducing concerns of any counterfeit products or illicit market across North America or Colombia. Notably, this practice dovetails with the new age of cannabis consumer packaged goods (“CPG”).
Under the licensing deal, Flora will retain the right of first refusal to produce and distribute any CBD or CBG products around the world under the Tonino Lamborghini brand.
Tonino Lamborghini, the eponymous company’s founder, launched a line of designer beverage products in the mid-90s, becoming the first entrepreneur to achieve this feat. Since then, the company has been driven by the mission to propagate the brand’s intrinsic energy through a selection of drinks. Presently, Tonino Lamborghini produces an exclusive line of signature drinks, including energy drinks, espresso coffee in three different blends, soluble chocolates in eight flavors, vodka, and wines (https://cnw.fm/82WW4).
With CBD- or tetrahydrocannabinol (“THC”)-infused alcoholic drinks currently illegal in the United States, Flora Growth plans to concentrate on Tonino Lamborghini’s non-alcoholic beverages. The company says that infusing coffee, one of the most popular beverage segments globally, with cannabinoids, for example, will serve as a strong differentiator for the product line, beyond its connection to the luxury brand, particularly with the growing demand for CBD-based products.
According to an analysis by BDS Analytics, CBD now represents a booming market in the United States, where, buoyed by the emergence of marijuana dispensaries, CBD sales are projected to reach $20 billion by 2024, up from $1.9 billion in 2018. This figure will translate to a global market share of 44%, considering BDS forecasts that the global CBD market will reach $45 billion in 2024 (https://cnw.fm/1mpkR).
Further, BDS notes that as the popularity of CBD has gathered momentum, piquing the interest of even more consumers, so too has it persuaded the established corporations to create CBD products. Flora Growth’s recent partnership with Tonino Lamborghini is a testament to this statement.
“We are excited to partner with such a well-known luxury brand as Tonino Lamborghini, which already boasts a very successful line of beverages and aligns with Flora’s brand portfolio of high-end products,” stated Flora Growth CEO Luis Merchan. “This partnership is yet another step in the execution of Flora’s strategic plan to build a world-class house of brands and is also a major component of our sales and distribution strategy in the lucrative US market.”
The company’s recent licensing agreement follows on the heels of the acquisition of Vessel Brand Inc. (“Vessel”), a Carlsbad, California-headquartered industry leader in luxury cannabis consumer technology. Boasting a proven go-to-market strategy for direct-to-consumer sales for the US and global cannabis markets that has resulted in rapid growth since inception in 2018, Vessel will serve as a critical component of FLGC’s North American cannabis strategy (https://cnw.fm/cZfXc).
Flora Growth, which operates one of the largest outdoor cultivation facilities in the world, leverages natural, cost-effective cultivation practices to supply cannabis derivatives to its diverse business divisions, including cosmetics, hemp textiles, and food and beverage. Previously, through its Kasa Wholefoods division, the company only produced non-cannabis drinks from responsibly sourced exotic Amazonian fruits. The recent partnership, therefore, marks Flora Growth’s entry into the cannabis beverages market.
For more information, visit the company’s website at www.FloraGrowth.ca.
NOTE TO INVESTORS: The latest news and updates relating to FLGC are available in the company’s newsroom at https://cnw.fm/FLGC
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