BEER: We chose Lexaria after a very thorough review of the market place, and they were kind enough to provide us the ability to complete our review during the non-binding term of our initial letter of intent that we jointly announced back in April. Within about two weeks of that press release hitting the wires, literally every company who had a tech platform to turn cannabis into a water soluble ingredient contacted us. It allowed us to examine the market very thoroughly and enabled us to feel like we had already made the right decision. Lexaria’s key differentiating feature for us was that they are using full spectrum oil, unrefined and complete with all of the CBD’s, THC, and terpenes, and rendering it odorless and tasteless as well as water soluble. Their process of accelerating and increasing the onset of the effect is something lots of different companies can do, but none of them could guarantee there is no taste or aroma of cannabis. And consumers want their cabernet sauvignon to taste like wine, not burnt leaves and grass clippings.
We are currently in discussions with lots of different LP’s, most of whom would like us to produce beverages for them. There are 65 companies who own licenses to produce cannabis, and only 4 of them have an announced beverage strategy. All of them will need one, or they will end up as cannabis farmers providing a commodity to a market place that will value brands. And we believe beverages are the most likely solution for the average consumer, as they are the format that we have been using for social stimulants like alcohol, especially now that smoking is something relegated to the back alley. And gummies and chocolates are simply an irresponsible format, given the risk of consumption by children and the evidence of that already occurring.
CCIM: Do you envision a standard offering, or will your products be varied – some with higher THC content and others perhaps a low THC but higher CBD for those who are seeking the health benefits from CBD without the potential effects associated with THC and delivered through beverages?
BEER: We are still in the formulation stages for our infused products. We definitely envision a number of standardized experiences tailored for social gatherings, lunches and light consumption occasions, and relaxing and unwinding at home. There is also a lot of interest in the sport recovery
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