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Entourage Health Partners with Boston Beer Subsidiary to Launch and Sell Portfolio of Innovative Cannabis-Infused Beverages in Canada

Sep 1, 2021 • 7:12 AM EDT
10 MIN READ  •  By Dev Dev
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Entourage Health Corp. (TSX-V:ENTG(OTCQX:WDDMF) (FSE:4WE), a Canadian producer and distributor of award-winning cannabis products and brands, announced today that its subsidiary and licence holder WeedMD RX Inc. has signed agreements with BBCCC, Inc., a subsidiary of the The Boston Beer Company, Inc. (NYSE: SAM) (‘BBC’), and Ontario-based Peak Processing Solutions (‘Peak’), a subsidiary of Althea Group Holdings Ltd (ASX:AGH), to launch a new portfolio of non-alcoholic cannabis-infused beverages in Canada, with production commencing in Q4, 2021.

Under the terms of the five-year development, supply, manufacturing, sales and marketing agreements, BBC and Peak will develop the beverages with Entourage’s cannabinoid-rich input biomass processed at Peak’s Windsor, Ontario facility. Entourage will be the exclusive distributor of the cannabis-infused beverages in Canada leveraging Entourage’s expansive local sales and marketing network.

“The cannabis market is constantly evolving and with a growing base of consumers seeking consumption alternatives, we’re excited to partner with Boston Beer and Peak to elevate our offerings with Canadian-made, cannabis-infused beverages developed by one of North America’s most iconic craft beer brands,” said George Scorsis, Interim CEO and Executive Chair of Entourage. “We are proud to expand into another consumer vertical with award-winning partners of well-known products that will focus on all segments including the emerging self-care market. Our collective industry expertise coupled with extensive cannabis research and advanced branding strategies will lay the foundation for new product collaborations and further market expansion opportunities at scale. Our strong industry presence, sales force and reputation for consistently delivering award-winning brands in Canada makes this an ideal collaboration.”

“Since the early days of medical access, Entourage has cultivated accessible, quality-produced cannabis that is considered a benchmark in a regulated market – and they truly exemplify what we look for in our suppliers,” said Paul Weaver, Head of Cannabis at BBCCC Inc. “This partnership is further strengthened by Peak Processing Solutions, with the talent and systems in place to ensure every drink is prepared with the highest care and excellence. We are excited to work with Entourage and Peak to bring best-in-class beverages to Canadian consumers.”

Peak Founder and President, Gregg Battersby added: “The team at Peak are delighted to partner with two industry leaders in Entourage Health and The Boston Beer Company to develop what promises to be an exciting range of cannabis-infused beverages. This collaboration is further validation of Peak’s significant and unique capabilities in the Cannabis 2.0 space, and the latest in a growing list of strategic and innovative partnerships.”

Cannabis Beverage Market

The Cannabis 2.0 market represents a strategic market opportunity given that products within the category yield a substantial price premium in the Canadian adult-use market compared to dried flower and cannabis oils (Reference: Nurturing New Growth; Canada Gets Ready for Cannabis 2.0, Deloitte). Cannabis beverages are also appealing to new-to-cannabis consumers as an alternative to traditional alcohol beverages, many of whom are also using the products for self-care or wellness reasons.

According to Deloitte’s recently issued Cannabis Report, “cannabis non-combustibles and health-and-wellness products now represent the industry’s greatest long-term growth potential.” (Reference: Deloitte 2021 Cannabis Consumer Report). As more cannabis-infused products become available via mainstream consumer goods, greater appeal is expected from a larger base of consumers with varied cannabis-intake preferences.

The beverage market has already seen significant transformation over recent years through innovation and e-commerce growth. A recent report by Million Insights estimates the cannabis beverage market will grow at a CAGR of 17.8 per cent from 2019 to 2025 to reach US$2.8 billion. (1) The report found this growth is being driven by a range of factors, including the rise of the health and wellness movement and the preference for cannabis beverages among millennials.

Transaction Summary & Strategic Benefits

Under the terms of the supply and manufacturing agreement, Entourage will supply, on an exclusive basis, all cannabis input materials required by Peak to manufacture BBC-branded, non-alcoholic cannabis-infused beverages.

BBC and Entourage also entered into a sales and marketing agreement under which Entourage will license certain newly-developed brands from BBC and leverage its national sales force and sales licences to market, distribute and sell the products in Canada with the support of BBC’s deep brand-building expertise.

Strategic Benefits:

  • Branded Craft Beverage Expertise: With its extensive experience, top-tier status and global success in launching craft beers, ciders, hard iced teas and hard seltzers, Boston Beer recently created a Canadian subsidiary, BBCCC, Inc. to focus on formulating non-alcoholic cannabis beverages in Canada. BBCCC Inc. is entering this key market while continuing to gauge the regulatory environment in the U.S. for future expansion opportunities. With innovation at its core, Entourage looks to expand its consumer offerings and diversify into new markets with new innovative, third-party-branded products.
  • Robust Ontario-based Operations: Peak has one of the first large-scale independent processing facilities of its kind, specialising in the manufacturing and distribution of cannabis-infused beverages, concentrates, topicals and other Cannabis 2.0 products. Peak and Entourage have a long history of working together in developing hydrocarbon extract of freshly harvested and frozen cannabis biomass to produce live resin formulations of renowned Entourage cultivar, Pedro’s Sweet Sativa. This partnership represents a natural progression and evolution of Peak and Entourage’s relationship and is a testament to the success of this association.
  • Strengthened Distribution Capabilities: Entourage will leverage its expansive and efficient cultivation and distribution network to manage production, market and sell the new cannabis beverage products. The Company has a robust and established infrastructure with distribution reach to approximately 95% of the Canadian cannabis retail market. Additionally, Entourage is continuously and successfully meeting emerging industry demand with its ever-expanding medical cannabis portfolio and rapidly growing retail footprint. The Company is strategically ready to test the entry of cannabis-infused beverages in the self-care and medical markets.

Visit Entourage Health’s newly launched website here. To access our corporate video, visit us here and to access our latest investor presentation and corporate deck here.

About Entourage Health Corp.

Entourage Health Corp. (formerly WeedMD Inc.) is the publicly traded parent company of WeedMD RX Inc. a licence holder producing and distributing cannabis products for both the medical and adult-use markets. The Company owns and operates a 158-acre state-of-the-art greenhouse, outdoor and processing facility located in Strathroy, ON as well as a fully-licensed 26,000 sq. ft. Aylmer, ON processing facility, specializing in cannabis extraction. With the addition of Starseed Medicinal, a medical-centric brand, Entourage has expanded its multi-channeled distribution strategy. Starseed’s industry-first, exclusive partnership with LiUNA, the largest construction union in Canada, along with employers and union groups complements Entourage’s direct sales to medical patients. In July 2021, Entourage signed a definitive agreement to acquire craft cultivator CannTx Life Sciences Inc. which operates out of its state-of-the-art micropropagation and specialty extraction facility in Guelph, Ontario. Upon the expected closing in late summer 2021, craft brand Royal City Cannabis will be added to Entourage’s elite product portfolio. The Company maintains strategic relationships in the seniors’ market and supply agreements with Shoppers Drug Mart as well as eight provincial distribution agencies where adult-use brands Color Cannabis and Saturday Cannabis are sold. Entourage is also the exclusive Canadian producer and distributor of award-winning U.S.-based wellness brand Mary’s Medicinals sold in both medical and adult-use channels.

About the Boston Beer Company

The Boston Beer Company, Inc. (NYSE: SAM) began in 1984 brewing Samuel Adams beer and the Samuel Adams brand is currently recognized as one of the largest and most respected craft beer brands. Our portfolio of brands also includes Truly Hard Seltzer, Twisted Tea, Angry Orchard Hard Cider, and Dogfish Head Brewery as well as other craft beer brands such as Angel City Brewery and Coney Island Brewing. Boston Beer formed BBCCC, Inc. in Toronto, ON in 2021 to as a separate subsidiary to explore the non-alcoholic cannabis beverage space. To learn more, please visit www.bostonbeer.com

About Althea Group Holdings

Althea Group Holdings Ltd (ASX:AGH) is a global leader in the manufacturing, sales and distribution of cannabis-based medicines and recreational cannabis products. AGH services these sectors via two distinct business units. Althea, the company’s pharmaceutical business, offers a comprehensive range of cannabis-based medicines which are made available to patients via prescription. Peak Processing Solutions, AGH’s recreational cannabis business, produces legal cannabis products purchased by adult consumers in retail stores. To learn more about Althea, please visit: www.althea.life. For more information on Peak, please visit www.peakprocessing.com

For more information, please visit us at www.entouragehealthcorp.com

Follow Entourage and its brands on LinkedIn

Twitter: Entourage, Color CannabisSaturday Cannabis & Starseed

Instagram: EntourageColor Cannabis, Saturday Cannabis Starseed

For further information, please contact:

For Investor Enquiries:
Valter Pinto
Managing Director
KCSA Strategic Communications
1-212-896-1254
entourage@kcsa.com

For Media Enquiries:
Marianella delaBarrera
SVP, Communications & Corporate Affairs
416-897-6644
marianella@weedmd.com

Forward Looking Information This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation which are based upon Entourage’s current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “may”, “would” or “will” happen, or by discussions of strategy. Forward-looking information in this press release includes, but is not limited to, information in respect of the manufacture and distribution of cannabis-infused beverages pursuant to the development, supply, manufacturing, sales and marketing agreements entered into by the Company and the prospects thereof.

The forward-looking information in this news release is based upon the expectations, estimates, projections, assumptions and views of future events which management believes to be reasonable in the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Forward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally; the ability of Entourage to implement its business strategies; the COVID-19 pandemic; competition; crop failure; and other risks.

Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, Entourage does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Entourage to predict all such factors. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in Entourage’s disclosure documents filed with the applicable Canadian securities regulatory authorities on SEDAR at www.sedar.com. The risk factors and other factors noted in the disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information.

Third Party Information This press release includes market and industry data that has been obtained from third party sources, including industry publications. The Company believes that the industry data is accurate and that its estimates and assumptions are reasonable, but there is no assurance as to the accuracy or completeness of this data. Third party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance as to the accuracy or completeness of included information. Although the data is believed to be reliable, the Company has not independently verified any of the data from third party sources referred to in this press release or ascertained the underlying economic assumptions relied upon by such sources

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

___________

1 https://www.prnewswire.com/news-releases/cannabis-beverages-market-size-to-expand-at-17-8-cagr-by-2025–owing-to-increase-in-sale-of-cannabis-infused-drinks–million-insights-301247061.html

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