New Age Beverage Corporation (NASDAQ: NBEV) shares surged on Monday after the Company had announced that it will begin distribution expansion with Walmart Inc. (NYSE: WMT). New Age shares closed 38.56% higher on Monday.
New Age acquired the Marley brand back in 2017. The Company restructured the brand into an organic mate and cold brew in 2018, which led to a 70% increase in demand for the product brand. Now, the brand is beginning distribution shipments in Walmarts across the U.S.
Marley brands is also planning on launching its Marley Mellow Mood Relaxation Drinks and its CBD version globally by 2019. Marley’s portfolio includes other drinks such as its Marley Mate, which comes in three flavors: three flavors, Be Jammin’ Berry, Ya Mon Mint, and Jamaican Me Mango.
“This is such a great accomplishment for New Age to gain its first national distribution, and to do so with the world’s largest retailer in Walmart. This is just the first initiative that we expect to do with them on the Marley brand and other New Age products on which we are in active discussions.” said Craig Thibodeau, Vice President of Key Accounts for New Age, “We know Walmart is equally as committed as New Age to providing healthier products for their customers, and we expect to make the full portfolio of New Age’s better-for-you products available as we expand the relationship.”
New Age’s beverages lineup isn’t solely just functional health drinks. Their portfolio includes its CBD-based beverage, which has received a lot of attention from investors. Many companies have begun to delve into the cannabis industry by integrating cannabis-based products into their portfolios.
Major pharmaceutical chains, CVS (NYSE: CVS) and Walgreens (NASDAQ: WBA) both announced in March that they intend to sell healthcare CBD-based products in their stores across several states.
Moreover, Constellation Brands (NYSE: STZ) was among the very few that took an interest in the cannabis-infused beverage industry early on and invested in Canopy Growth (NYSE: CGC). Constellation took a 9.9% stake in Canopy in 2017. Then in mid-2018, Constellation doubled down and invested USD 4 Billion into the cannabis company.
Molson Coors (NYSE: TAP) also dove into the cannabis industry and created Truss with Hexo (NYSE-A: HEXO). Truss is aimed towards developing non-alcoholic, cannabis-infused beverages for the Canadian market.