Flora Growth Corp. Announces Distribution Partnership with Sunshine State for Its THC-Infused Beverages, Targeting $2 Billion Market
Rhea-AI Summary
Flora Growth Corp. (NASDAQ: FLGC) has announced a distribution partnership with Sunshine State Distributing for its hemp-infused beverages, Melo and Cola. Sunshine, a leading distributor in the Southeastern United States, will manage the distribution through its extensive network of liquor stores, supermarkets, specialty stores, and convenience outlets. The partnership targets the cannabis beverages market, which was valued at $2 billion in 2023 and is projected to reach $117 billion by 2032, growing at a CAGR of 57.50%. The collaboration aims to expand Flora's presence in the U.S. market, particularly in retail locations where THC-infused products are in demand.
Positive
- Partnership with major distributor Sunshine State expands market reach in Southeast U.S.
- Access to established distribution network including liquor stores, supermarkets, and specialty stores
- Targeting rapidly growing cannabis beverages market projected to reach $117B by 2032
Negative
- None.
Insights
The distribution partnership with Sunshine State represents a strategic move into the rapidly expanding cannabis beverage market. The
The partnership's true value lies in Sunshine's established relationships with major retailers like Total Wine and ABC, which already have dedicated THC-infused sections. This existing infrastructure significantly reduces market entry barriers and distribution costs. The Southeast region's retail landscape and consumer demographics align well with hemp-infused beverage consumption trends, though competition in this space is intensifying.
While the market potential is significant, Flora's relatively small market cap of
Fort Lauderdale, Florida--(Newsfile Corp. - October 30, 2024) - Flora Growth Corp. (NASDAQ: FLGC) (FSE: 7301) ("Flora" or the "Company") is thrilled to announce a distribution partnership with Sunshine State Distributing ("Sunshine"). This agreement will see Sunshine, a leading distributor in the Southeastern United States, manage the distribution of Flora's hemp-infused beverages, starting with Melo and Cola.
With a reputation for delivering high-quality products to diverse retail outlets, Sunshine boasts an extensive portfolio that includes premium beverage brands, seltzers and beers. Their established presence and distribution infrastructure make them an ideal partner to amplify the reach of Flora's beverage offerings.
According to Fortune Business Insights, the global cannabis beverages market size was
"We are excited to partner with Sunshine, whose comprehensive distribution network aligns with our vision for growth," said Clifford Starke, Chief Executive Officer. "This collaboration not only strengthens our position in the U.S. market but also enhances our ability to bring our beverage products, Melo and Cola, to a broader audience. Sunshine's expertise will be instrumental in ensuring our products reach consumers."
Sunshine has extensive distribution capabilities to liquor stores across the U.S. This is particularly advantageous for Flora Growth as it provides direct access to a crucial retail segment where consumers are increasingly seeking alternative beverage options. The ability to place beverages in liquor stores will significantly enhance their visibility and availability, tapping into a market with a strong demand for hemp-infused beverages where prominent stores like Total Wine and ABC have dedicated THC-infused sections.
Sunshine's reach also encompasses a wide range of retail channels, including supermarkets, specialty stores, and convenience outlets. Their established relationships with key retailers in the region will facilitate the introduction of Melo and Cola to consumers across the Southeast.
About Sunshine State Distributing
Founded in 2016, Sunshine State Distributing is the newest Florida craft beer distributor headquartered in Orlando, Florida. With diverse backgrounds in beer brands, beer distribution, craft spirits distribution and the alcohol beverage industry in general, its team launched the company as a full-service beverage distributor aiming to partner with breweries and distilleries to grow their brands through education, customized promotions and a focus on exceptional innovative products. For more information on Sunshine, visit www.sunshinestatedistributing.com
About Flora Growth Corp.
Flora Growth Corp.'s mission is to become the leading NASDAQ small-cap international cannabis company. Flora is a cannabis-focused consumer-packaged goods leader and pharmaceutical distributor serving all 50 states and 28 countries with 20,000+ points of distribution around the world. For more information on Flora, visit www.floragrowth.com.
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Investor Relations:
Cautionary Statement Concerning Forward-Looking Statements
This press release contains "forward-looking statements," as defined by U.S. federal securities laws. Forward-looking statements reflect Flora's current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words "believe," "expect," "anticipate," "will," "could," "would," "should," "may," "plan," "estimate," "intend," "predict," "potential," "continue," and the negatives of these words and other similar expressions generally identify forward-looking statements. These forward-looking statements include, but are not limited to, statements about: Sunshine managing the distribution of Flora's hemp-infused beverages, starting with Melo and Cola or at all, and Sunshine's expertise being instrumental in ensuring Flora's products reach consumers. Such forward-looking statements are subject to various and risks and uncertainties, including those described under section entitled "Risk Factors" in Flora's Annual Report on Form 10-K filed with the United States Securities and Exchange Commission (the "SEC") on March 28, 2024, as such factors may be updated from time to time in Flora's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov/edgar. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Flora's filings with the SEC. While forward-looking statements reflect Flora's good faith beliefs, they are not guarantees of future performance. Flora disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based on information currently available to Flora (or to third parties making the forward-looking statements).
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/228275
FAQ
What is the new distribution partnership announced by Flora Growth (FLGC)?
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