Arizona tea maker considers entering the edibles market in Canada

Published Feb 3, 2020 02:00 p.m. ET
iStock / carlosduro

Who doesn’t enjoy a wonderful delicious cold iced tea, especially on a hot summer day? Those hot days are on the way in Canada, and the Arizona tea maker is ready to provide you with a THC infused beverage that is perfect for those summer picnics.

Those that like an iced tea beverage, the renowned American owned Arizona tea maker, will provide a cannabis-infused delicious tea.  This brand will not be available at the corner store or gas station.  The infused brand from the tea maker will only be available at licensed distributors/dispensaries.

Marijuana-infused gummies and marijuana-infused drinks have caught the attention of the Arizona Beverage Company. Dixie Brand Inc has formed a deal with the Arizona tea maker. Colorado-based Dixie Brands produce and sells delicious cannabis-infused drinks, candies topical creams, and vape pens.

The partnership will see the Arizona Iced tea beverage maker having THC – infused products on the market. Sources indicate that the companies will probably begin with gummies, and vape pens, leading to well-known Arizona iced infused teas, lemonade sodas, and coffees.

The company is aware that consumers may wonder about the association of the other products with the tea maker. The newly merged company will not be coming out with the infused beverage first, as some Arizona followers would expect. The name Arizona has not been associated with vapes or lotions before, and this is a new and exciting venture for the once owned family business.

The deal would see Dixie developing, distributing, and manufacturing the infused products to licensed dispensaries. Arizona will be responsible for the conceptual design of the pending new brand.

Cannabis in the U.S. is not legal federally; it is deemed a schedule 1 drug and cannot be transported across state lines. Although over 30 states have legalized cannabis for medical use and 11 for recreational use transporting across state lines can see you in jail.

The deal between Dixie and Arizona will work around that issue by having Dixie manufacture the THC infused beverages in each state that they are being sold in. Reportedly the market shares for the most sold tea maker beverage in the U.S. have been declining since 2013. However, Arizona  Iced Tea remains a leading U.S. iced tea brand by sales volume reported. The Arizona tea company is ready for a new opportunity, and the cannabis space seems to fit into their ideals.

One of the first significant American brands to dive into the U.S. marijuana markets was Arizona. Although the iced tea maker lost top spot in retail sales dollars last year to Pure Leaf, the sales for the teamaker are on the rise this year.

Health Canada rules and regulations regarding THC infused beverages

  • 10mg of THC per unit
  • 1000mg of THC per package
  • No added vitamins
  • No Nicotine
  • No caffeine
  • No combined sweetener, colours or sugars
  • Sold in licensed dispensaries or distributers only to legal age adults

Don Vultaggio, chairman of the Arizona Beverage, welcomes the involvement of cannabis in the company. Arizona is one of the first large private companies to open and embrace marijuana. Other companies are waiting for the federal legalization to be law. Vultaggio knows you have to be willing to try new things. He is confident that Arizona Beverages is one of the first to emerge into the cannabis space, and he is hoping that the early bird has caught the delicious and profitable green worm.

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