Arizona Beverage Co. has signed a licensing deal with cannabis company Dixie Brands Inc. to sell marijuana products.
Under the agreement, the owner of Arizona Iced Tea will partner for making and selling cannabis-infused products containing tetrahydrocannabinol or THC.
AriZona, through its affiliated entity Herbal Enterprises, LLC, will direct brand and product conceptual design. Dixie Brands will develop, manufacture, and distribute the new portfolio of AriZona branded THC infused consumer packaged goods.
The initial term of the partnership is three years, with an option to renew for up to two additional terms of two years each.
Both companies are expected to complete definitive agreements within forty-five days after the date of the LOI.
Don Vultaggio, Chairman, AriZona Beverages, said, “The cannabis market is an important emerging category, and we’ve maintained our independence as a private business to be positioned to lead and seize generation-defining opportunities exactly like this one. The Cannabis category is an ideal space to bring the flavor and fun of AriZona into new and exciting products…”
AriZona, owned by Hornell Brewing Co., Inc., provides many flavors of iced tea, juice cocktails, and energy drinks. Meanwhile, Dixie Brands, which currently operates in 6 U.S. states, sells weed vaporizers as well as marijuana-laced edible products.
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