New Age Beverages Corp. (NBEV) - Get NewAge Inc Report believes it has a jump on the CBD-infused beverages market in the U.S. after signing an agreement to develop and distribute Bob Marley branded cannabis-infused beverages.
The company said the deal with the estate of the deceased reggae legend leverages its own global retail distribution footprint with the brand recognition and popularity of the Bob Marley name and legacy to sell the new drink, which was introduced earlier this week.
"Retailers and distributors realize that it will be a long road for smaller CBD brands to gain traction and brand equity. Under the Marley brand platform, we are able to leverage a massive global brand with ties to healthy cannabis use, to ultimately grow a beverage brand beyond anything we have seen to-date," said Michael Cunningham, senior vice president of sales for New Age.
The drinks will come in 15.5-ounce cans and contain 25 mg of pharmaceutical grade CBD per serving.
The company's stock fell 6.4% to $6.64 by the close of trading on Wednesday afternoon.