The Next Big Breakout Beverage Market Has Been Identified

Not that long ago energy drinks became all the rage, catapulting unknown companies like Red Bull and Monster to the top echelon of beverage companies practically overnight.

Now history is poised to repeat itself with a new beverage sector—cannabis-infused drinks. And chances are it will be currently little-known companies like BevCanna Enterprises Inc. (CSE:BEV)(OTC:BVNNF) that lead the way. 

Why BevCanna (CSE:BEV)(OTC:BVNNF) in particular? We’ll get into all the “ingredients” it has for success in just a moment but first let’s look at the opportunity that could be now opening up for investors. 

Experts predict that the global cannabis-infused beverage market will jump from its current value of $89 million to a whopping $1.4 billion by 2023[1]. The market is then expected to keep soaring to over $4.4 billion by 2025[2].

That’s a jump of billions upon billions of dollars in value over just six short years. Back when energy drinks took off, Monster saw its stock price rise from 9 cents to today’s level of $63.57. That means if you’d invested $1,000 back then, today your shares would be worth $706,326. … That’s an amazing 705%+ increase.

Similar gains are likely to be made in the cannabis-infused beverage market in the coming years!

Already major companies—like Coca-Cola and Constellation Brands—are making noise about getting involved in the sector. But history shows us that it’s the innovative, early-mover, smaller companies like BevCanna (CSE:BEV)(OTC:BVNNF) that benefit the most in these market breakouts—either by seeing their companies grow exponentially or by being generously bought out by a major player. So why should investors keep an eye on BevCanna (CSE:BEV)(OTC:BVNNF)?

Why could it soon match the success of these illustrious companies—Snapple in the ’70s (part of a $19-billion buyout[³]), Red Bull in the ’80s (valued at $9.9 billion[4]), Monster in the 2000s (up 68,000% since then[⁵]), and VitaminWater (bought by Coke for $4.2 billion[⁶])?

Let’s take a closer look at what separates BevCanna (CSE:BEV)(OTC:BVNNF) from the competition.

Since a picture is worth a thousand words, let’s take a look at why BevCanna (CSE:BEV)(OTC:BVNNF) has more than one leg up on the competition.

1. BevCanna (CSE:BEV)(OTC:BVNNF) has brand and bottling expertise combined with market-validated formulations…
2. BevCanna (CSE:BEV)(OTC:BVNNF) has a dream team for creating and distributing Consumer Packaged Goods (or CPG) and brands that resonate on a global scale…
3. BevCanna (CSE:BEV)(OTC:BVNNF) has the patented and proprietary technology necessary for a scalable manufacturing process…
4. BevCanna’s (CSE:BEV)(OTC:BVNNF) has a world-class manufacturing facility with annual bottling capacity of 72 million units per annum/per shift, giving them ample room to grow…
5. BevCanna’s (CSE:BEV)(OTC:BVNNF) has land in the Okanagan with exclusive rights to a pristine alkaline spring water aquifer, and one of the most envied outdoor cultivation locations in the world…
6. BevCanna (CSE:BEV)(OTC:BVNNF) is continuing to establish multiple revenue pathways, including:

• White-label manufacturing services
• All-new regulated retail  opportunities nationally in Canada for BevCanna’s house brands when cannabis beverages become legal in October 2019, with global export possibilities
• A joint product-development agreement in California, for a unique, shelf-stable, and completely water-soluble powder
• Licensing, joint venture and brand acquisitions

And that’s just the 30,000-foot view of why BevCanna (CSE:BEV)(OTC:BVNNF) has the potential to become the Coke, Snapple or Monster of the rapidly emerging cannabis beverage market.

Just look at Plus Products Inc. (CSE:PLUS) (OTCQB:PLPRF). They’ve blazed a successful trail of cannabis-infused products and are deservedly dominating the edibles market in California.

So why could BevCanna (CSE:BEV)(OTC:BVNNF) do the same? Or more?

• Unmatched branding expertise
• Experienced and seasoned management team
• Core competency in beverages, including existing world-class manufacturing facilities
• The BC advantage: legacy of pristine water, superior cultivation climate and soil terroir

BevCanna’s (CSE:BEV)(OTC:BVNNF) also been actively establishing deep relationships with other consumer-focused enterprises.

Monster (NASDAQ:MNST) delivered a 68,000% increase in value since 2003[⁷]…beating out ALL other US stocks this century![⁸]

Who’d have thought a once-small beverage company could grow to accomplish that!

Getting in early on any of yesterday’s “hot new” beverage sector winners would have meant an early retirement.

After adjusting for splits, Monster’s original stock price in January 2000 was a mere $0.09. Today it’s $63.57. That means if you’d invested $1000 back then, today your shares would be worth $706,326. … That’s an amazing 705%+ increase.

That’s what unique brand positioning and a hot new sector make possible.

And with the hot new sector TODAY being the global cannabis-infused beverage market, investing in this hot new market’s big winner would likely be an equally profitable investment, if not more.

We’ve already seen multiple reasons why BevCanna (CSE:BEV)(OTC:BVNNF) is well positioned to be that dominant market player. But there’s a lot more to their story.

They have a first-mover advantage over a lot of the competition:

• They’re already familiar with Health Canada licensing procedures for natural health products through bottling the mineral infused water brand Trace (more on this later).
• They’ve already received a Health Canada Industrial Hemp Cultivation License.
• They’re already in the evidence submission package phase for their Standard Processing License (the last step).

That means once cannabis-infused beverages are legalized in Canada in October, and the Standard Processing License is issued, BevCanna (CSE:BEV)(OTC:BVNNF) can submit new products to Health Canada for approval, and then leverage their infrastructure and expertise to ensure their brands are among the first to market (ETA Q1 2020).

And when their brands hit the shelves, they won’t be like all the other cannabis-infused beverages. One VERY significant differentiator will be BevCanna’s (CSE:BEV)(OTC:BVNNF) ability to deliver better-for-you products.

How? By tapping the expertise of their Chief Commercialization Officer, Emma Andrews, who is a Registered Nutritionist (voted Best Holistic Nutritionist in Canada in 2018), and specializes in product development within “better-for-you” categories geared towards a health-conscious consumer.

And through BevCanna’s (CSE:BEV)(OTC:BVNNF) exclusive agreement with NextLeaf Solutions for their patented, industrial-scale extraction technology. The process starts with a biomass of any quality and potency, and from that extracts a purified distillate capable of up to a 95% cannabinoid concentration. After a final water solubility conversion, the result is tasteless and odorless cannabinoids, which means BevCanna’s products won’t require additional flavor masking, added sugar, or unhealthy additives for mass market appeal.

And since the NextLeaf tech works with biomass of any quality, and is highly scalable, BevCanna (CSE:BEV)(OTC:BVNNF) can operate at greater efficiency than competitors without tech like this! That’s another very big competitive advantage!

BevCanna’s (CSE:BEV)(OTC:BVNNF) team has had success developing and launching the Trace Beverage brand, a proof of concept when it comes to BevCanna’s ability to produce and sell a truly unique product.

What makes the Trace brand so distinctive? It’s a fulvic and humic mineral-infused water. That means it has a naturally dark color (rich in trace minerals) while preserving the crisp alkaline spring water taste, rich in trace minerals—aiding in cognitive performance, immune function, and gut health, and complete homogeneity—never separating.

BevCanna (CSE:BEV)(OTC:BVNNF) is also planning multiple branding strategies to carve out a diverse portfolio within the cannabis-infused beverage sector, including:

• Authentic storytelling around legendary BC Bud cannabis and BevCanna’s (CSE:BEV)(OTC:BVNNF) location in BC’s Okanagan (more on that later).
• Borrowing from Coca-Cola’s branding playbook by using form factored bottles (Coke created their iconic bottle to visually set the brand apart, resulting in over 99% of Americans being able to identify the Coke bottle by its shape alone).[⁹]
• Fulfilling consumers’ demands for clean ingredients and healthier products by stressing how BevCanna’s (CSE:BEV)(OTC:BVNNF) products don’t need unhealthy additives, or excess sweeteners.

BevCanna even formed an exclusive marketing agreement with Dossier Creative, who have experience in the beverage and consumer retail sectors as well as comparable sectors such as wine, spirits, beer and nutritional supplements. Their clients, meanwhile, include such notables as Constellation Brands, Coca-Cola, and Kraft Foods, and recent high-profile brand successes including Vega, The Little Potato Company and Mike’s Hard Lemonade.

All this branding expertise will uniquely position BevCanna’s (CSE:BEV)(OTC:BVNNF) ready-to-drink (or RTD) in-house brands in Canada as well as the company’s cannabis-infused, water-soluble powder being developed for commercialization in the US (California) with the concurrent strategy of becoming a supplier to other B2B partners.

But perhaps the ultimate stroke of strategic genius is BevCanna’s (CSE:BEV)(OTC:BVNNF) white-labeling potential that draws on their team’s unmatched expertise in brand positioning and product formulation to service white label clients and launch BevCanna’s own house brands. That way they’re not only competitive alongside other beverage companies, but also have a strategy that actually helps BevCanna while they help competitors!

As already mentioned, strategic branding will set apart the leaders in the canna-beverages space, and BevCanna’s (CSE:BEV)(OTC:BVNNF) branding strengths and advantages could be what makes them the sector’s standout winner in the same way Monster conquered the energy drink sector.

It’s an undeniable advantage and key branding story element for BevCanna (CSE:BEV)(OTC:BVNNF) to have so many clear and direct connections to BC:

• The province is a world-renowned leader in cannabis thanks to “BC Bud” meaning resilient and in-demand strains thanks to hot summers, crisp autumns, and ample rainfall[10].
• BevCanna’s bottling of the iconic BC alkaline spring water brand Trace.
• BevCanna’s BC-based world-class infrastructure, including 40,000 square foot facility with 170,000 square foot expansion approved, HACCP certified manufacturing facility with current bottling capacity of 72 million units annual per shift.
• BevCanna’s 100-acres of outdoor growing space on highly fertile and famous Okanagan soil.

Growing cannabis outdoors in BC’s Okanagan is such a market advantage that it deserves a closer look … especially since SpeakEasy has 290 acres there and CannTrust Holdings just scooped up 81 acres in April 2019.Simply put, the Okanagan is one of the best growing environments in the world. And its numbers—including being home to 100+ wineries—make that clear:

• Farms: 5,486
• Area of farms: 1.7 million acres (5x the size of Los Angeles)
• Total farm capital: $9.34 billion[11]

Doing business in BC is a point of pride for BevCanna (CSE:BEV)(OTC:BVNNF). At the same time, their strategy is to leverage their BC advantage and the BC Bud fame driving demand for global exports once they obtain EU-Good Manufacturing Practices (EU-GMP) certification.Thinking big like this is how small companies grow into big winners in a hot, new market.

The BevCanna (CSE:BEV)(OTC:BVNNF) team is stacked with industry-leading CPG (consumer packaged goods) and brand building experts. Here’s a glimpse of the team’s key leaders. 

Marcello Leone, CEO & Chairman of the Board: Mr. Leone is an expert at taking companies from small businesses to publicly traded firms. His brand creation successes include the Trace and Naturo Aqua brands of nutritional water beverages. Previously, he lead Trace into over 2200 POD across Canada along the likes of including 7/11, London Drugs, Loblaws and Metro Markets. He was integral in getting Trace to be the world’s first CFIA approved plant based water beverage, which took four years to obtain.

Don Chisholm, Chief Brand & Innovation Officer: Mr. Chisholm brings the innovative brand development experience needed to grow BevCanna (CSE:BEV)(OTC:BVNNF) into an industry leader. He was previously with the Mark Anthony Group, which developed the Mike’s Hard Lemonade brand (sold for $350 million[13]), and is Co-founder & Creative Director of Dossier Creative, with clients including Constellation Brands, Coca-Cola, Trace and Kraft Foods.

Emma Andrews, Chief Commercialization Officer: Ms. Andrews has a distinctive track record of building global lifestyle brands. She led product innovation and education at Vega, including reformulations and product launches that contributed to a $550-million USD buyout[14]. Voted Best Holistic Nutritionist in Canada in 2018, she is a strategic advisor for several cannabis companies, from processing to retail, including Nextleaf and Higharchy.

That’s just some of the proven industry experience that makes the BevCanna (CSE:BEV)(OTC:BVNNF) team stand apart. There are still several other seasoned leaders on the team that any competitor would gladly give their right arm for.

1. Comparables are trading at much higher valuations: Companies that have parts of what BevCanna has assembled—ideal growing land, processing, product development, bottling, branding expertise and white label offerings—but not the whole, prove the viability of the market and its potential for high returns.
2. Cannabis-infused beverages are the next great drink sector: New beverage sectors have big winners: Snapple, Red Bull, Monster, VitaminWater. The latest is the cannabis-infused beverages sector, where BevCanna (CSE:BEV)(OTC:BVNNF) could lead the wave, thanks to their first mover advantage and healthier products.
3. Strategic branding will set apart the leaders in the canna-beverages space: BevCanna knows branding! They’ve learned from the Trace brand. They have Dossier Creative in their corner. And they can even generate revenue by selling white label services to competing brands.
4. The BC advantage: BC has built-in cannabis fame and product appeal. Add to that an established strategy for working in harmony with First Nations, and an international exports strategy, and BevCanna (CSE:BEV)(OTC:BVNNF) has a winning brand formula.
5. Management team with proven ability to create a market-dominating company: Only brand experts create world-class brands like Mike’s Hard Lemonade and Vega. Those are the kinds of industry experts on the BevCanna (CSE:BEV)(OTC:BVNNF) team.

[1] https://www.forbes.com/sites/nickkovacevich/2019/04/15/drink-up-the-next-frontier-in-cannabis-is-beverages/#24a2b9a378d5

[2] https://www.zionmarketresearch.com/news/cannabis-beverages-market

[3] https://www.wsj.com/articles/dr-pepper-snapple-to-merge-with-keurig-green-mountain-1517231161

[4] https://www.forbes.com/companies/red-bull/#5c7c5fba61ce

[5] https://www.cnbc.com/2019/02/27/monster-beverage-is-up-nearly-70000percent-in-the-last-20-years.html

[6] https://www.nytimes.com/2007/05/26/business/26drink-web.html

[7] https://www.cnbc.com/2019/02/27/monster-beverage-is-up-nearly-70000percent-in-the-last-20-years.html

[8] https://markets.businessinsider.com/news/stocks/this-centurys-best-performing-us-stock-sells-energy-drinks-not-iphones-2019-4-1028114374

[9] https://www.coca-cola.ca/stories/the-story-of-the-coca-cola-bottle

[10] https://www.straight.com/cannabis/1105196/untold-history-bc-cannabis#

[11] https://www.bcaitc.ca/sites/default/files/Grow%20BC/Regions/GrowBC_2014_Thompson%20Okanagan%20Region.pdf

[12] https://aptnnews.ca/2019/06/18/trans-mountain-approval-met-with-promised-resistance-by-first-nations/

[13] https://www.bcbusiness.ca/bc-owned-mikes-hard-lemonade-sells-for-350-million

[14] https://www.vancouversun.com/business/Burnaby+Vega+sold+Denver+based+giant+million/11125955/story.html