The Green Organic Dutchman Holdings Ltd (TSX:TGOD) (US:TGODF) announced Wednesday that it had entered the US beverage space as a co-founding investor and strategic partner in newly formed Califormulations LLC.
Califormulations will operate out of Columbus, Georgia serving global branded companies with concept-to-shelf beverage commercialization support including formulation development, technical services, in-house pilot scale production and contract manufacturing coordination.
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The Green Organic Dutchman will work with Califormulations to speed up the US launch of the company’s branded organic hemp-based CBD beverages, as local laws and regulations permit.
"We are incredibly excited to partner with Califormulations to further our development of hemp-based CBD beverage products," said Green Organic Dutchman CEO Brian Athaide in a statement. "With the US market for functional beverages, including wellness, energy and sport recovery, currently worth over $20 billion, we want to remain on the cutting edge of innovation and establish the foundation for future proprietary and novel TGOD-branded products.”
Athaide added that the “forward-looking strategic partnership” positions Green Organic Dutchman to capitalize on the future cannabinoid beverage market.
Califormulations is well positioned to immediately execute on a strategy to become a top beverage formulation and commercialization centre in the US. The Green Organic Dutchman’s cofounding investment in Califormulations is happening alongside Symrise Inc, including its Beverage Innovation Centers in Laguna Beach and Teterboro. Symrise, Green Organic Dutchman and the founding management have chipped in with equity and debt financing to capitalize and get Califormulations off the ground.
Global organic CBD beverage strategy
As global laws and regulations change, Califormulations will allow the Green Organic Dutchman to manage supply chains. Initially the focus will be on having bulk non-infused beverage concentrates produced and shipped by Califormulations to Green Organic Dutchman-owned and contracted manufacturing sites around the globe, including Canada, for infusion with cannabinoids and distribution within legal markets.
Califormulations is a key component in Green Organic Dutchman’s existing global organic cannabinoid-infused beverage strategy. The company’s beverage team will have access to and use of Califormulations' R&D facilities to collaborate on hemp-derived CBD beverage developments, while maintaining and enhancing the company’s intellectual property portfolio.
The Green Organic Dutchman will enjoy “certain exclusivities” linked to the development of organic CBD-infused beverages through the Califormulations platform, said the company.
"Collectively, the complementary capabilities of this ecosystem give Califormulations a unique position in the beverage/consumer packaged goods market that will foster innovation and scale new, successful brands quickly," said Paul Graham, president of Symrise Flavors North America.
The Green Organic Dutchman boasts operations focused on medical cannabis in Canada, Europe, the Caribbean and Latin America, as well as the Canadian recreational market.
Established by Dutch founders, the company grows organic cannabis in high-technology, eco-friendly and sustainable facilities. The cannabis is grown naturally in Canadian soil without the use of synthetic pesticides, herbicides or fertilizers and wrapped in eco-friendly packaging.
—(Updates with details on global CBD beverage strategy, quotes, adds video)—
Contact Uttara Choudhury at [email protected]