Sproutly Canada Inc. (SPR:CSE; SRUTF:OTCQB) provided in a news release an update on its development of cannabis-infused beverages through its joint venture with OCC Holdings, a Moosehead Breweries affiliate.
Joint venture CEO Matthew Oland, a former Moosehead senior executive, said his team has made significant pre-commercialization strides regarding the beverages it intends to sell in the Canadian market through Toronto Herbal Remedies Inc. (THR), Sproutly's Health Canada-licensed cannabis producer.
"I am confident in our ability to deliver a great tasting beverage to Canadians that provides a controlled, strain-specific cannabis experience utilizing Sproutly's naturally water soluble cannabinoids known as Infuz20," Oland said in the release.
The joint venture intends for the infused beverages to be flavorful, premium products that deliver a cannabis effect within five minutes and lasts 60 to 90 minutes but that lack any cannabis aroma, taste or sediment. The initial target market is casual and canna-curious consumers.
The joint venture completed work in the areas of brand development, product development, go-to-market strategies, and manufacturing, logistics and operations.
Specifically, for the brand, a name, logo, identity, architecture and strategy for positioning the joint venture in the market were developed. A corporate name was decided, website domains were obtained and website development was started.
Regarding the product itself, testing of various beverage formulations was done to determine ideal characteristics, including flavor profile, sweetness, color, calories, THC dosages and cannabis strain. Packaging and labeling options were evaluated. The joint venture engaged a market research firm to test the brand and product with consumers and identify their preferences.
Work that was completed for taking the product to the market includes presentations to provincial cannabis regulatory agencies and choosing private retailers to help delineate initial launch markets. Commercialization details were decided, such as preferred markets, pricing and product positioning. The joint venture began formulating a marketing plan with assistance from an outside brand and marketing agency.
As for manufacturing, logistics and operations, it was decided that THR will use third party contract manufacturers, or co-packers, to make the product. A number of them were assessed, and discussions with the preferred ones began. Third-party distribution firms were assessed. Discussions with cannabis regulators continued regarding supply chain logistics and distribution.
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