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The World's Largest Cannabis Beverage Facility Opens in Los Angeles

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Blaze Life Holdings (BLH) has ramped up cannabis beverage manufacturing through DeltaBev, the world's largest cannabis beverage manufacturing plant. The facility boasts state-of-the-art processing and packaging capabilities, focusing on product quality, stability, and consistency. DeltaBev aims to make the cannabis beverage category more accessible to consumers by enhancing customer margins and fostering competitive retail pricing. BLH's commitment to supply chain optimization has attracted Mary Jones Soda as a co-manufacturing and distribution partner.
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The commencement of operations at DeltaBev's new facility represents a significant expansion in the cannabis beverage manufacturing sector. This move by Blaze Life Holdings (BLH) to ramp up production capabilities through DeltaBev, the world's largest cannabis beverage plant, is poised to meet increasing consumer demand. The cannabis industry has been experiencing rapid growth and the beverage segment, in particular, is expected to continue expanding as it attracts consumers looking for alternative consumption methods beyond traditional smoking.

The integration of advanced manufacturing technologies like reverse osmosis water filtration and inline emulsion injection indicates a commitment to high-quality production standards. This could enhance the competitiveness of BLH's products in the consumer-packaged goods (CPG) industry by ensuring product consistency and potency, which are critical factors for consumer trust and regulatory compliance. Furthermore, the ability to leverage purchasing power to improve customer margins could lead to more competitive retail pricing, potentially increasing market share and driving sales volume.

BLH's strategy of vertical integration, culminating in the partnership with Mary Jones Soda for co-manufacturing and distribution, is indicative of a business model focused on cost reduction and efficiency. Vertical integration allows companies to control more aspects of their supply chain, which can result in lower production costs, improved logistics and faster time to market. For investors, this could translate into better margins, increased profitability and potentially higher returns on investment in the long run.

The announcement also highlights the importance of supply chain optimization, which is a key driver of profitability in the CPG industry. By eliminating operational complexities and streamlining processes, BLH aims to deliver fresher products to consumers more quickly, which could significantly enhance customer satisfaction and brand loyalty. These operational efficiencies may be reflected in BLH's financial performance, making the company an attractive prospect for investors focused on growth and operational excellence within the burgeoning cannabis market.

As the cannabis industry continues to evolve, regulatory compliance remains a critical aspect for companies like BLH. The focus on manufacturing quality standards and THC potency preservation at DeltaBev is not only a competitive advantage but also a necessary measure to meet stringent state and federal regulations. Ensuring product quality and consistency is paramount as the legal landscape for cannabis products develops, with potential implications for interstate commerce and federal legalization on the horizon.

Moreover, the vertical integration of BLH and its adherence to regulatory standards may position the company favorably in the event of future regulatory shifts. Companies that maintain high-quality control and compliance standards are likely to navigate regulatory changes more effectively, which can be a significant factor for risk-averse investors considering the legal uncertainties surrounding the cannabis industry.

Vertically integrated Cannabis Company Blaze Life Holdings (BLH) ramps up cannabis beverage manufacturing and secures production and distribution of Mary Jones Soda

LOS ANGELES, Feb. 1, 2024 /PRNewswire/ -- DeltaBev, a cannabis beverage manufacturing facility, commenced operations last month with the wunderkind brand CANN as its first production partner. Located in Los Angeles' San Fernando Valley, the 45,000-square-foot facility is the world's largest cannabis beverage manufacturing plant in terms of capacity. It boasts state-of-the-art processing and packaging capabilities across canning, bottling, and "mini" production lines.

DeltaBev is focused on upholding rigorous manufacturing quality standards for beverages, aligning itself as a high-quality and viable supplier in the consumer-packaged goods (CPG) industry. The facility's construction places a premium on product quality, stability, and consistency. DeltaBev prioritizes THC potency preservation at all stages with reverse osmosis water filtration, water de-aeration, advanced mixing technologies, inline emulsion injection, CO2 purging, and counter pressure filling. 

Distinguishing itself from most other cannabis beverage co-manufacturers, DeltaBev extends standard procurement services to all customers. By leveraging its purchasing power to enhance customer margins, DeltaBev aims to foster more competitive retail pricing, ultimately making the cannabis beverage category more accessible to consumers.

As part of the vertically integrated Blaze Life Holdings (BLH), the facility's production capabilities extend to seamless distribution with co-located SuLo Distro, a full-service cannabis distributor covering California.

BLH's continued focus is optimizing its vertical integration structure to drive streamlined efficiencies in developing, producing, and distributing cannabis beverages. "By streamlining our operations and eliminating unnecessary complexity, we are enabling downstream profitability and accelerating time to market, delivering fresher products to consumers faster," said Shreyas Balakrishnan, CEO of BLH.

BLH's commitment to supply chain optimization is why Mary Jones Soda chose the Company to co-manufacture and distribute its beverages. " We are excited about our next phase of growth in California and partnering with both DeltaBev and SuLo Distro. The Canoga Park facility accelerates our innovation into more beverage options as well as gummies and shots. The SuLo distribution capabilities will also ramp our go-to-market strategy as we expand our footprint into more California Dispensaries," said David Knight, CEO of Mary Jones.

Seattle-based Jones Soda was one of the first mainstream CPG brands to enter California's recreational cannabis market through its subsidiary, Mary Jones. Since its launch in 2022, Mary Jones has witnessed impressive sales growth of over 500% and has become the fifth-largest cannabis beverage brand in California.

In addition to Mary Jones, DeltaBev customers include CANN, Sip Elixirs, CQ, Nevis Brands, Tinley's, award-winning Bodega Coolers, and Cheeche'lada, a cannabis-infused Michelada released in partnership with cannabis legend Cheech Marin.

The Company's strategic investment in the supply chain uniquely positions it for distribution to other states. Alongside continued momentum for further regulatory changes and the DEA's anticipated rescheduling of cannabis, interstate cannabis commerce is becoming more of an imminent reality.

"The cannabis beverage category is far from its tipping point, and we understand the power of full-scale efficiencies within the beverage distribution supply chain. While we cannot speculate exactly when regulations will be lifted, we are prepared for when they are," says Shreyas Balakrishnan, CEO of BLH.

To learn more about DeltaBev's capabilities and services, visit www.deltabev.com

About Blaze Life Holdings

Blaze Life Holdings (BLH) was founded in 2017 by two cannabis visionaries: Los Angeles real estate investor Scott Kim and Paul Burgis, former COO and CFO of Los Angeles-based Golden Road Brewing, which was acquired by Anheuser-Busch (AB) InBev (NYSE: BUD) in 2015. They saw the opportunity for a sophisticated, vertically integrated cannabis business that operationally parallels the craft brewing industry, adapted to drive efficiency and growth in a rapidly growing cannabis beverage industry. The BLH group comprises ILLA Canna (cultivation facility, branded products, and retail), SuLo Distro (full-service cannabis distributor with beverage capabilities), and Delta Bev (cannabis manufacturing), focused on providing clear and simple co-packing solutions for cannabis brands with a focus on beverages. BLH is helmed by professionals with a combined 80 years of experience in beer and beverage production, distribution, and commercial execution, aligned to bring end-to-end solutions to brands and retailers to increase share and drive category growth.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/the-worlds-largest-cannabis-beverage-facility-opens-in-los-angeles-302049701.html

SOURCE Blaze Life Holdings

FAQ

What is the name of the vertically integrated Cannabis Company mentioned in the press release?

Blaze Life Holdings (BLH)

Where is the cannabis beverage manufacturing facility located?

Los Angeles' San Fernando Valley

What is the ticker symbol for Blaze Life Holdings?

BLH

What is the name of the cannabis beverage manufacturing facility?

DeltaBev

What is the focus of DeltaBev's manufacturing quality standards?

Product quality, stability, and consistency

Why did Mary Jones Soda choose Blaze Life Holdings as a co-manufacturing and distribution partner?

Due to BLH's commitment to supply chain optimization

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About BUD

Anheuser-Busch InBev SA/NV, commonly known as AB InBev, is a Belgian multinational drink and brewing company based in Leuven, Belgium. AB InBev has a global functional management office in New York City, and regional headquarters in São Paulo, London, St. Louis, Mexico City, Bremen, Johannesburg, and others.