There's a big shift going on in the beverages industry.
Many players in the alcohol business have aimed to gain ground in the cannabis space, an industry set to expand rapidly in the next several years. But it isn't just Constellation Brands Inc.'s (STZ - Get Report) financing of Canopy Growth Corp. (CGC - Get Report) that shows that the trend is in full swing.
New Age Beverages Corp. (NBEV - Get Report) a $337 million soft drinks maker, said Monday it was acquiring Morinda Holdings, a cannabis-infused drink seller, for $85 million. Although New Age makes only soft drinks, many of its products are aimed at creating a relaxing or therapeutic experience, and it wants to capture the growing consumer hunger for cannabis infused drinks.
"This acquisition has potential to expand their strategic push into cannabis infused beverages globally, and further strengthens their award-winning healthy beverage portfolio," a spokeswoman for New Age Beverages said in an email to TheStreet.
New Age had revenue of $52 million in 2017 and wasn't profitable, but it is growing at a fast clip. The deal, according to the spokeswoman, could create a company with $300 million of revenue and $20 million in EBITDA (earnings before interest, taxes, depreciation and amortization) over some period of time within one year.
New Age rose 9.07% to $5.05 on Monday. Morinda is a privately held company.