Flora Growth has formed a joint venture, Peak USA, with Althea Group to enter the hemp-derived beverage market.
“Our focus lies not solely on cannabis but on providing an alternative to alcohol. Our objective is to establish a nation-wide brand,” said Flora Growth CEO Clifford Starke.
The partnership is strategically positioned to establish cannabis beverages distribution in the U.S. by handling regulations and facilitating market access via CPG channels like wine and liquor stores.
The joint venture will leverage the strengths and resources of both Peak and Flora to capitalize on current commercial opportunities in the beverage market in the U.S. Peak contributes production know-how, while Flora brings a wealth of brand launching, sales and marketing expertise within the landscape of lifestyle brands in the U.S.
Althea’s Peak estimates that it produces close to 40% of all cannabis beverages available in Canada. Cannabis-infused beverages are a rapidly growing product category within the cannabis industry and currently represents 2.1% of the Canadian adult-use cannabis market, which equates to approximately CAD$134.4 million.
