Hill Street Beverage Company Inc (CVE:BEER) (OCTMKTS:HSEEF) is launching a new Entertainer’s Pack of alcohol-free wines just in time for the holidays.
Orders for the Hill Street Entertainer's Pack for 2019 are more than triple the amount recorded in all of 2018, with more than half the holiday season still remaining, the Toronto-based company said in a statement Monday.
The $30 pack contains 750 mL bottles of alcohol-free merlot, chardonnay and brut blanc and is nationally available at Shopper’s Drug Mart, Sobey’s, and Quebec’s Clark Drouin Lefebvre.
Terry Donnelly, Hill Street’s CEO, attributed the sales increase to the awareness of alcohol-free options available and a heightened desire from consumers for non-alcoholic alternatives.
“With cannabis being more widely consumed, consumers are increasingly seeking ways to enjoy these new social intoxicants without consuming alcohol and risking overconsumption or unpredictable outcomes,” Donnelly said in a statement.
“We are now seeing increased presence of sober bars, sober social events, and a host of new sober influencers appearing in social media advocating for healthier and safer alternatives to alcohol. Major alcoholic beverage producers are predicting up to 20% of their revenues will be from alternatives to alcohol by 2025."
Hill Street said Monday that food retailer Fortino’s will carry Hill Street’s full line of products.
The firm’s chief commercial officer Doug Taylor said that retailers are “thinking strategically” about the product category and increasing their shelf space, assortment and promotional activities for alcohol-free wine and beer.
Hill Street is currently preparing to launch a full portfolio of cannabis-infused wine, beer, and cocktails in 2020.
The firm also raised nearly C$800,000 in a private placement priced at C$0.06 per unit, according to a release Monday.
Each unit consists of one common share and one warrant exercisable at C$0.13 per share for a period of two years from closing. Management and board members participated in the financing, taking up over 30% of the offering. Finder fees for a portion of the financing were paid to Paul Keefe and MLG Capital Ltd. for amounts of $15,000 and $7,500 respectively.
The company is also saying goodbye to director Paul Rosen, who has retired from the board.
Hill Street's stock recently traded up 25% to $0.05 a share in Toronto and jumped 39% to US0.03 in New York.
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