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Arizona Iced Tea Creators Are Soon To Be Pushing Out Weed-Infused Products

by Baller Alert Staff
August 8, 2019
Reading Time: 2 mins read
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Arizona Fuses with Weed

istock

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Written by @saywooord

The company behind the staple 99 cents Arizona Iced Tea is turning to the cannabis industry to boost sales and growth.

According to Wallstreet Journal, Arizona Beverage Co. will be dabbing into marijuana-infused gummies and drinks after signing a licensing deal with the prominent cannabis company, Dixie Brands Inc. The company makes vapes, candies, tinctures, drinks, and topical creams sold in five U.S. states. The deal with Arizona Beverage Co., which is still pending approval from Dixie’s board, will give them rights to manufacture marijuana-infused products and sell them in their dispensary. It also offers Arizona the right to purchase nearly $10 million worth of stake in the cannabis company. 

According to the article, Arizona will most likely start with vape pens and gummies, followed by beverages, including the signature Ice Tea, lemonade, and more. Sales are expected to begin in the U.S., then expand to Canada and Latin America. 

After a decline in numbers, Arizona hopes that this will increase revenue by getting a headstart in the cannabis market. Although there are many risks, the beverage company is willing to take the risk, being one of the first big American brands to leap into the marijuana market.  

“You’ve got to be willing to try things,” Don Vultaggio, Arizona’s chairman and CEO told WSJ. “The upside is we’re one of the first ones in an emerging space.”

Although the deal is possible, weed is only legal in 11 states, and medically in 30, and regardless, cannot be transported over state lines. The idea is that Dixie will manufacture and sell in the states where they are sold, and Arizona will have no parts of the production.

This could be a major step into the world of weed for big-name American companies; however, with competition from Canada as marijuana is legal, the U.S. will have to continue loosening its laws to keep up.

Arizona Fuses with Weed
istock

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