given that alcohol free beer and CBD combined would likely be the best sport recovery beverage on the planet.
CCIM: Your current line of award winning beverages - will they be the base or at least similar to the formulation for the planned cannabis infused beverages?
BEER: Absolutely. Although, when you look at our production facilities and equipment, we can basically put a consumable liquid that is infused with cannabis into a package, and we can remove alcohol from a liquid containing alcohol without negatively impacting the product.
CCIM: What is the size of the cannabis beverages market in Canada based on your own intelligence gathering and estimates? Any plans for an international presence?
BEER: Deloitte has predicted that up to 60% of Canadians will try cannabis beverages at least once, and that the market for consumer goods made from cannabis will be $12Bn to $21Bn in revenues. We can measure the market based on what’s already happened in the USA, where you have seen up to 21% reduction in the sales of alcohol where cannabis has been legalized. In Canada, that would equate to at least a $5Bn market. What we definitely don’t believe is that it will be a “winner take all” market, or one that will be dominated by the big beverage companies. There are 817 independent craft brewers in Canada, who represent 15% of the volume and 25% of the revenues of the beer industry. There are over 200 independent wineries in Ontario alone. Once the introduction of great tasting, cannabis infused beverages becomes possible, we think there will be room for lots of new players, and lots of opportunity for companies like us. The Canadian beverage market is just over $25Bn annually. Until we have the financial resources to build a global brand, that’s more than big enough for us to tackle.
CCIM: Fantastic. For investors, at time of writing BEER has just shy of 53M net shares outstanding and a hair over 86M diluted. Per TMXMoney, the market cap at time of writing is C$16.7M. Due to being recently listed by means of an RTO, there is not much out there with respect to your revenues.
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