BevCanna Enterprises Inc (CSE:BEV) (OTCMKTS:BVNNF) announced Tuesday that it has entered into a non-binding letter of intent (LOI) to manufacture white-label CBD wellness beverages for influential US health and beauty brand Marianna Naturals Corp.
Under the proposed definitive agreement in the LOI, BevCanna said it will become the exclusive Canadian manufacturing and distribution partner for Marianna's new line of CBD-based wellness beverages.
BevCanna will leverage its extensive experience in developing and launching beverages in the Canadian market to bring the popular brand to Canada, and will maintain responsibility and compliance with Health Canada.
BevCanna will manufacture the beverage line through its pending standard processing license, and the subsequent receipt of its sales license. Marianna will be responsible for national sales and marketing efforts to launch the product line in Canada. The white label agreement will be for an initial term of three years with a subsequent three-year renewal option.
"We're very pleased to add a highly successful brand like Marianna to our growing portfolio of white-label partners," John Campbell, chief strategic officer at BevCanna said in a statement. "The proposed partnership fits well with our strategy of building out this vertical and our goal of achieving a consistent revenue stream for the business."
Marianna CEO Joel DeBellefeuille said his company has been looking for a partner with beverage manufacturing and regulatory expertise to bring its CBD beverage line to the Canadian market.
"BevCanna fit the bill perfectly. We think that our customers will love the finished product," he said.
Vancouver-based BevCanna uses patented technology to make water-soluble cannabinoid infusions using THC and CBD from cannabis and hemp for in-house brands and white-label clients. The company has a 292-acre cultivation site in the Okanagan Valley, a pristine spring water aquifer, and a 40,000-square-foot manufacturing facility in Osoyoos.
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