Growpacker, a Canadian contract manufacturer of THC and CBD-infused edibles and beverages in the U.S., announced the launch of its brand incubator and accelerator program created to advance both THC and CBD brands sold in California.
The first company participating in the program is CERIA Brewing Company, the maker of Grainwave, a de-alcoholized cannabis-infused beer using unique brewing processes and custom formulations.
Co-founded by Jodi Villa, CEO, and Keith Villa – creator and former brewmaster of Blue Moon Belgian White, the top craft beer in America -having CERIA as its debut partner gives Growpacker’s program a level of legitimacy from the start.
Now that 30 U.S. states have legalized medical cannabis, 10 states and the District of Columbia have legalized recreational use, and the industrial growing of hemp is now federally legal, the cannabis industry has very rapidly matured as demand soars along with the scale of deals happening in the space.
Only weeks ago, Flow Kana announced the completion of a $125 million Series B led by Gotham Green Partners – representing the largest private funding round for a cannabis company to-date, surpassing the previous record set by Acreage Holdings’ $119 million Series E in July 2018.
Founded in 2015, and centered around Northern California’s Emerald Triangle region (Mendocino, Humboldt, and Trinity Counties), Flow Kana is building the first sustainable cannabis supply chain, partnering with craft farmers who focus on sun-grown, organic production to build out a socially and environmentally-conscious and independent farm ecosystem. As of 2018, the company was partnering with 200 partner farmers.
And only days ago, Harvest Health & Recreation (Harvest Health), one of the largest vertically integrated cannabis companies in the U.S., announced it had acquired Verano Holdings, one of the largest privately-held multi-state, vertically integrated licensed operators of U.S. cannabis facilities, for approximately $850 million.
The deal, which is the largest U.S. cannabis consolidation in history, will result in a company that is one of the largest multi-state operations in the country as measured by licenses held and facilities permitted, including up to 200 facilities in 16 states, and 123 retail dispensaries.
Amid this landscape, Growpacker is aiming to give its program participants the ability to leverage its expertise, to access new formulations, and to access discounted services and fast-track market penetration in California.
In fact, the cannabis-infused beverage segment is growing so rapidly, that three Rabobank executives: beverage analyst, Boucard Nesin; senior beverage analyst, Jim Watson; and executive director of food and agribusiness research, Stephen Rannekleiv, recently joined Jennifer Maloney, a beverage, tobacco, and cannabis reporter with the Wall Street Journal, to discuss how the integration of cannabis is affecting the beer, wine, and spirits industries.
CERIA’s THC-infused Grainwave Belgian Style White Ale was introduced in Colorado in December 2018 through a limited production run which immediately sold out, and together CERIA and Growpacker are planning an official production launch of the product in California in the near future.
“We look forward to introducing this innovative new product category to America’s largest cannabis market through Growpacker’s state-of-the-art manufacturing facility and distribution network,” said Keith Villa. “As the leading co-packer in cannabis, Growpacker is helping tomorrow’s brand names grow and scale commercially, while also accelerating the evolution of California’s adult-use market.”
As part of the partnership between the two companies, Keith Villa will serve as a strategic advisor to Growpacker in connection to its cannabis beverage category, which will be key in developing the THC-infused beverage segment – potentially the fastest growing segment in the industry.
Named as one of the top trends for 2018 by the Specialty Foods Association, edibles have exploded as a category, as consumers in California spent $180 million on cannabis-infused food and beverages in 2016, and Colorado consumers spent $121 million on marijuana-infused food and drinks last year, according to data from Archview Market Research.
As sales soar, and supply chain infrastructure continues to be built out, Growpacker has launched its program at a transformative time of disruption for the food and beverage industry.
“As our first incubator and accelerator brand, CERIA Brewing Company arrives at a transformational stage in our company’s evolution,” said Stephen Boyd, CEO of Growpacker. “We are excited to begin this journey with CERIA, and work with their talented team as they move their momentum across the country, establishing their market presence in California. We have seen tremendous interest in this incubator program and look forward to building one of North America’s largest portfolios of innovative cannabis brands.”
-Lynda Kiernan