NEWS mw
maker of the Schlafly beer brand. David
Schlafly, a commercial real estate devel-
oper, is a cousin of co-founder Tom
Schlafly, who will remain chairman of
the brewery and a minority stakeholder,
along with private equity firm Sage
Capital. Schlafly’s beers are distributed
across 12 states.
Funkwerks Brewery Expands
To New York City
Fort Collins, Colorado-based Funkwerks
has expanded into New York City. On the
heels of the brewery’s recent expansion
into Ohio, Kentucky, and the Chicago
area, Funkwerks has entered its 12th state,
bringing a selection of its beers—includ-
ing Saison, Tropic King, Raspberry Provin-
cial, and White—to select locations
throughout the city in partnership with
distributor Manhattan Beer. The move
brings Funkwerks’ distribution footprint
in closer alignment with Brooklyn Brew-
ery and 21st Amendment, the Colorado
brewer’s partner companies.
Destihl Adds
Maryland And Alaska
Normal, Illinois-based Destihl Brewery
has expanded into Maryland and Alaska
in partnership with DOPS, Inc. and
Bill’s Distributing, respectively. The
brewery’s beers, including the Wild Sour
Series and DeadHead IPA series, are
rolling out now in 12-ounce cans and
on draft in retail and on-premise loca-
tions throughout the states. Destihl,
which expanded into a 47,000-square-
foot brewery and taproom around two
years ago, is available in 30 states across
the U.S.
Cannabis News
Canadian Companies
Form Cannabis Alliance
Eleven alcohol and cannabis companies
in Canada have formed the Cannabis
Beverage Producers Alliance, intending
to influence the forthcoming standards
for cannabis-infused beverages. The
group, led by former Nova Scotia Premier
Darrell Dexter, includes Truss Beverages—
a joint venture between Molson Coors
and Hexo Corp—Hill Street Beverage
Co., CanBev, and others. Among their
concerns are the ban on producing
cannabis beverages in the same facility
as other drinks, restrictions on naming
or associating cannabis drinks with a
parent company’s established alcohol
brand, and labeling rules that disallow
the use of words like “beer” or “wine” as
descriptors. Finalized regulations are
expected to be released this summer and
implemented no later than October 17,
one year after Canada legalized sales of
cannabis flower and oil.Vitamin Shoppe Adds
CBD Supplements
Multi-state retailer Vitamin Shoppe has
joined Walgreens, CVS, and Rite Aid in
selling CBD supplements. Whereas the
other retailers have limited themselves to
topical products, Vitamin Shoppe is sell-
ing a line of Irwin Naturals CBD oil softgel
capsules. A basic bottle of 60 15-mg. CBD
capsules retails for $33. In addition, the
Irwin Naturals offerings will be joined next
month by Garden of Life Dr. Formulated
Broad Spectrum CBD Extract softgels and
liquid drops. The supplements are avail-
able in 14 states, plus Washington, D.C.
and Puerto Rico.Ionic Brands Corp.
Set To Acquire Zoots
Ionic Brands Corp. is set to acquire fellow
Washington-based company Zoots,
which is known for its edibles. Ionic,
which specializes in cannabis oils and
vaporizers, will pay $855,000 in cash and
issue 10.7 million shares on the closure
of the transaction. Additionally, Ionic
will issue up to 5.35 million common
share purchase warrants to the sharehold-
ers of Zoots, with an exercise price ofC$1.33 ($0.99) per share, exercisable over
three years. Zoots forecast revenues of
approximately $7.5 million for 2019 and
currently distributes its line of THC
drops, gummies, energy shots, and hard
candies in Washington, Illinois, Colo-
rado, and Massachusetts. As part of
Ionic, Zoots will expand into Oregon,
California, and Nevada.Cannabiniers Board Appoints
Constellation Veteran
Former Constellation Brands executive
Marty Birkel has joined the advisory board
of Cannabiniers, a cannabis brand
management company. Birkel is the
former president of Ballast Point Brewery
and also served as chief global sales officer
among other roles in his 20 years with
Constellation. He also recently joined the
board of Vermont-based WhistlePig.
Headquartered in San Diego, Cannabi-
niers’ brand portfolio primarily focuses on
cannabis beverages, including Two Roots
THC beer, Brewbudz cannabis coffee, and
the forthcoming Creative Waters Co. line
of low-calorie cannabis RTDs.Canopy Growth Finds Location
For Hemp Extraction Complex
Canopy Growth’s New York hemp
extraction complex will sit on a 48-acre
property in Kirkwood, New York. The
location comes with a 308,000-square-
foot facility that will be modified from its
previous use in the production of vacuum
parts into a cannabinoid-extraction facil-
ity with the capability to manufacture
consumer products from the raw material.
Canopy will begin hiring senior leaders
for the industrial park later this year and
expects to fill its workforce by mid-2020.
Canopy estimates the facility will create
hundreds of local jobs. It has also begun
working with farms to supply the facility
with hemp and will prioritize farms within
the state. Canopy intends to invest $100-
$150 million in the project. mw
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