Sparkling water wasn't mindful enough... So New Age Beverage happened. It's leading the wellness beverage space with exotic kombucha-esque drinks. New Age shares surged 39% Monday as it signed a Walmart distribution deal — three low-sugar/carb/calorie Bob Marley-branded energy teas will hit shelves of Earth's biggest retailer.
The deal smelled of CBD... (but it was technically CBD-free). New Age bought the Marley brand in 2017. With the blessing of Bob's family and a partnership with a cannabis investment fund, New Age turned to CBD: The relaxing, psychoactive-less pot extract you see everywhere.
- In January, New Age announced plans for a CBD-enhanced "Marley Mellow Mood" flavor within the next year.
- Those 15.5-ounce cans would be filled with 25mg of "pharmacy-grade" CBD.
- The CEO already projected $30M in sales nationwide in the first year of CBD Mellow's launch.
- And you can already find Mellow on Amazon — But it's got no CBD. And there's a reason.
One main factor affects New Age's CBD future... The federal government. While cannabis is legal in some US states, it's still not legal federally. That's an issue if you're distributing nationwide with, say, Walmart. May 31st is the FDA's public hearing on CBD foods, so New Age has its calendar circled. Until legalization, only CBD-free New Age drinks are included in the Walmart deal.