CANNAINVESTOR Magazine U.S. Publicly Traded September 2018 | Page 231

231

CCIM:OK … just how big do you see the Beverages segment getting? We already know that less and less cannabis uses want to smoke and more of those that do are transitioning to other methods. We also know that in those States where Cannabis has been legalized that alcohol sales (and use) has fallen by around 15%. Your elevator pitch time …. Why Tinley?

TNY: Despite all the panic by the alcohol companies about their consumers switching to cannabis, we’re actually finding that our consumers wind up mixing our drinks with alcohol when they get home. So our products are actually complementary to alcohol rather than a substitute (in fact our products probably increase sales of certain types of beverage alcohol products, given how well they mix). As a result, I predict that beverage alcohol companies will begin working to develop alcohol products that are designed to mix with cannabis edibles and drinks. I also believe we’ll see more beverage alcohol companies partnering with cannabis companies to create actual cannabis products. I haven’t seen any other products on the market that so closely replicate liquor products, so I believe we’re best suited to satisfy those consumer need states.

And to answer your question about how big this category can get, beverage alcohol is a $200 billion industry in the USA, of which about a third is from states where cannabis is legal in comparable forms. So if say 20% of those consumers switch to cannabis beverages, then we’ll be an early mover in a $13 billion category that will grow to a $40 billion category as more states legalize. Our margarita has shown up at a lot of parties, and the feedback is that it wound up being the drink of choice. So 20% is not an unreasonable number.

CCIM:Cheers …, before I let you go … is there anything else you want to mention?