Medicinal cannabis company Creso Pharma (ASX: CPH) has teamed up with Canada’s LGC Capital and United Kingdom-based Baltic Beer Company to develop cannabis and hemp-based alcoholic and non-alcoholic beverages.
A variety of ingredients including hemp and cannabis seeds, extracts and terpenes will be trialled in formulating the beverages.
The collaboration will be run under a joint venture company which will be headed by Creso Pharma’s chief executive officer and co-founder Dr Miri Halperin Wernli, LGC Capital’s chief executive officer John McMullen and Baltic Beer’s director Alex Klaos.
“This new joint venture combines Creso Pharma’s cannabis and hemp expertise with prestigious and multiple award-winning beer creators, Baltic Beer, to develop and provide consumers with an innovative, high quality hemp and cannabis-derived beverages,” Dr Halperin Wernli said.
The trio will oversee the new company’s day-to-day operations in developing a suite of cannabis and hemp-based drinks, as well as growth and distribution.
Research is already underway with the first product in the development pipeline being a premium craft beer range which will contain unique terpene mixes from cannabis.
Terpenes are the essential oils from plants and possess flavour and aroma. According to Creso Pharma, the United States Food and Drug Administration recognises terpenes as safe and classifies them as food additives. Additional international regulatory bodies also classify terpenes as safe.
The new beer will contain a cannabis odour, taste and feel, but won’t have tetrahydrocannabinol (THC), cannabidiol (CBD) or any other cannabinoids.
“Through the vast geographic reach of three parties, which spans a number of continents, future commercial and distribution partners have already been identified and are eagerly anticipating this innovative new range of drinks,” Dr Halperin Wernli said.
Distribution partners in Europe, far East Asia, Central and Latin America, Canada, Africa, Australia and New Zealand have all been identified.
However, the joint venture will undertake further research and development to develop more opportunities in these initial target markets.
Commenting on the newly established joint venture LGC founder and co-chairman David Lenigas said the international market for hemp and cannabis infused beverages was growing at “astonishing rates”.
Creso Pharma anticipates the first batches of beer will be available in selected markets by May next year, with shipments for commercial sales planned by July.
By early afternoon trade, Creso Pharma’s shares were up 4% at A$1.30, after a morning run which saw the company’s price soar 16% to A$1.45.