The Tinley Beverage Company (QRSRF) (Toronto, Canada) has developed a line of liquor-inspired, cannabis-infused beverages for use in jurisdictions throughout North America where such products are permitted. It is under contract with The Tinley Collective, a California Cooperative Corporation that is engaged in cannabis procurement and distribution within California’s medical cannabis system. Tinley’s whollyowned subsidiary, Hemplify, Inc. (Santa Monica, CA), manufactures the "Hemplify" and “Tinley’s Tonics” line of products. "Hemplify" is a line of fruit-flavored, sugar-free, vegan, drinkable supplements that contain hemp stalk extract. This extract contains terpenes and other phytoconstituents. Each product also contains 9-12x the potassium electrolyte content of major sports drinks, 200mg of Omega 3 and excellent sources of 9 vitamins, including 100% DV of Vitamin C, B12 and D. The Tinley’s Tonics squeeze supplement is a creamy, chocolate blend of hemp extract, MCT oil and lactose-reduced whey protein. The company is selling its products in 100+ retail locations in California and online throughout the United States.

The Tinley Beverage Company Inc. was incorporated under the laws of the Province of Ontario, Canada by articles of Incorporation dated October 26, 2007. On October 6, 2015, the Company completed the Change of Business to a pure-play cannabis beverage company, and pursuant to the Articles of Amendment dated October 6, 2015, the Company changed its name from Quia Resources Inc. to "The Tinley Beverage Company Inc.".1

Tinley officially launched its first phase of retail channel test sales on August 27, 2016, approximately three months prior to the end of the fiscal year, in a limited number of stores in Southern California. The Company’s initial product is a line of premium, refreshing hemp CBDinfused drinkable supplements that have the potential to become one of the first national brands in this emerging category in the USA. Cannabidiol (“CBD”) is a cannabinoid found in hemp stalk that is enjoying increased consumer awareness as it is a non-psychoactive ingredient that is also found in certain strains of medical cannabis. In addition to containing hemp CBD, the supplement is fortified with 9 times the electrolyte potassium of major sports drinks, omega 3 and 9 vitamins. The product is designed for both functionality and refreshment.

On September 30, 2016 the Company announced its entry to the cannabis beverage market and unveiled concepts for its liquor-style cannabis drinks. The Company subsequently made these products available to members of its medical collective at the Cannabis Cup in San Bernardino in April 2017, and it is working to make these products available for dispensary sales by the end of 2017.

CBD Product Progress

The Company’s Hemplify CBD product line has been accepted for placement at its largest retailchain customer to date and is currently being setup for shelf placement at a 14-store premium grocer, representing the Company’s largest customer to date. The chain offers a variety of CBD products in locations in Los Angeles and throughout Southern California. The Company has also placed Hemplify in a 4-location natural grocery store and café chain, as well as in numerous independent grocers and convenience stores throughout Los Angeles and Orange Counties. It has also begun a trial with a Texas distributor, representing the Company’s first “bricks and mortar” distribution outside California.

Hemplify has been renewed at all its key accounts and continues to add additional retailers, however the Company notes that sell-through can remain uneven, consistent with most early-stage mainstream products.

The Company is leveraging consumer and buyer feedback on Hemplify to incorporate into its nextgeneration versions of the product, which will involve updated ingredient profiles and flavors, including the previously-announced lemon-lime flavor.

The Company will therefore produce the lemon-lime flavor during a production run that will include the full suite of updated products. This will also involve package design updates to maximize crossbranding between the Company’s CBD products and its Tinley ’27 cannabis-infused beverages in both mainstream stores and dispensaries. The Company is delighted to now be working with one of the USA’s leading food and beverage formulators to update these products. This formulator has offices throughout the USA and Internationally; the Company believes it is the first CBD consumable company to work with a formulator with this level of geographic presence.

Operational Update

The Company has moved several sales functions including chain accounts to internal resources and other distribution-focused organizations. It continues to outsource sales and account management for independent, street-level accounts including grocers and convenience stores.

The Company has also shifted certain operational functions related to THC bottling to bottling experts in close proximity to the planned site of temporary production. The Company had previously elected to delay production of its cannabis beverages to incorporate certain terpene technology that enables users to enjoy an uplifting, Sativa-like effect. This unique approach overcomes a challenge that is often faced by cannabis edibles, which typically deliver a more neutral, Indica-style effect.

The revised formulations now enable Tinley’s consumers to enjoy an experience that more closely resembles the social and psychoactive effects of alcoholic beverages. This more directly supports the consumer value proposition of the Tinley ’27 alcohol-inspired product line. The technology has been successfully incorporated into Tinley’s latest formulations, and the Company remains confident that it will go into production in the near future.

Long-Term Bottling Facility

The Company is presently negotiating a lease agreement for a commercial property in Southern California that is designed to accommodate a capacity of 10-15 million bottles per year. The retail prices for Tinley’s retail products are expected to range from $6-30 per bottle. The Company also intends to offer co-packing and distribution services to third-party beverage companies to exploit any unused capacity on the new line.

The Company intends to produce in its temporary facility until the long-term facility can be retrofitted and permitted in accordance with California state regulations, which are expected to be released in shortly.

Territorial Expansion

The Company is pleased with the Canadian government’s recent decision to allow edibles and drinks within one year of the intended launch of adult-use (“recreational”) cannabis products in July 2018. As previously announced, the Company is engaged in discussions with Canadian licensed producers, and intends to finalize such agreements such that they can be modelled upon the Company’s California operations and experience. The Company remains committed to prioritizing its California operations due to the State’s market size and regulatory structure.

Recent update

On January 23, 2017 The Company update that it has been engaged in a search for a facility in California to house its Phase I bottling line. The Phase I Bottling Facility will be used to produce and bottle its line of THC infused beverages, Tinley ’27 and Tinley Cocktails, until the Company completes a build of its long-term, full-scale bottling plant. The Phase I facility will also be used to provide co-packing services for third-party beverage producers. Tinley has identified a facility in Riverside County, California, and this facility has now completed retrofits requested by the municipality, including those requested by Tinley to accommodate Tinley’s bottling equipment. The facility is awaiting what it believes to be its final municipal inspection to allow production of various products, including Tinley’s beverages. The Company has agreed, in principle, to all material terms to house the Phase I bottling equipment and intends to enter a binding agreement with the facility, contingent upon it receiving its permit. At such time, Tinley intends to commence immediate filling operations, and expects production of the initial products to take 2-3 weeks to complete. Initial products include the Tinley Margarita and the Tinley ’27 Coconut Rum.

References

  1. ^ https://drinktinley.com
Tags: US:QRSRF
Created by Asif Farooqui on 2019/12/17 04:41
     
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