On August 7. 2018 Tinley Beverage Company (TNY.C) announced that it has added more distributors and significantly expanded its sales and marketing resources in California.
Prior to this announcement, Tinley had locked down distribution of The Tinley Cocktails ready-to-drink Margarita, and Tinley ’27 Coconut Rum with CMX Distribution, based in Costa Mesa, California.
CMX distributes cannabis products throughout California via a network of affiliate warehouses. It has state and local distribution licenses in the Southern California metropolitan area.
Tinley Cocktails and Tinley ’27 Cannabis-Infused Beverages:
Two additional distributors – Santa Rosa-based Pacific Expeditors and Coachella Valley-based Vets Leaf – have also now taken delivery of Tinley’s cannabis-infused, alcohol-free margarita.
Together with CMX’s core markets, Tinley’s distributors collectively cover Los Angeles, Orange County, the San Francisco Bay Area, Sacramento, San Diego and Palm Springs/Coachella Valley.
That covers about 10 million cannabis-philic Californians. The golden state has had a long, glorious love affair with marijuana and hemp.
Tinley’s sales team now reaches virtually all of California’s 400 licensed dispensaries.
After initial orders placed by the new distributors, as well as “recent re-orders from CMX”, Tinley is ramping up production capacity at its temporary manufacturer in the Coachella Valley.
In the press release Tinley states that “full production capability will not be achieved until the Company’s facility in Long Beach is operational.
Long Beach Bottling Facility Buildout Update:
Tinley has an LOI with a national engineering firm for retrofitting of a 20,000 square foot cannabis beverage bottling facility and distribution center in Long Beach, California.
The facility will be capable of producing 10+ million bottles annually and housing a specialised licensed cannabis distribution facility. The build-out is expected to be complete in Q1/19.
In the meantime, Tinley will continue producing on a small, but aggressive scale at its temporary facility.
With higher than anticipated demand for the Tinley Cocktails Margarita, Tinley is working to fulfill current orders, and will then be in a position to allocate line time to its Tinley ’27 coconut rum once such margarita orders are complete.
Tinley’s Margarita is “an authentic alcohol-free replica of America’s most popular cocktail,” using the same flowers, essences, ethers, oils and flavors found in national brand liquors.
The Margarita delivers a 10mg dose of pure cannabis distillate, plus Pineapple Jack terpenes for an uplifting Sativa effect – all with a fraction of the calories and sugar of alcohol margaritas.
Sales, Production and Marketing Expansion
Tinley recently recruited sales and production executives who played key roles in the California operations of Asahi Beer and Sierra Nevada Brewing, while also retaining the Green Street Agency of Los Angeles, “a premier cannabis industry brand builder and creative resource”.
The focus of this engagement will be a combination of cannabis industry events, influencer marketing, and in-store merchandising and promotions.
Tinley’s CBD-infused functional beverage, Hemplify, is now shipped to one of the USA’s largest distributors to the head & smoke shop channel, serving about 4,000 stores.
While Hemplify is primarily distributed in health and natural food stores, “consumer awareness of CBD remains high in the head and smoke shop channel, as well as by cannabis users in general.”
Tinley has squared up with shareholders, stating that it is devoting, “limited allocation of resources to hemp CBD, given its primary focus on the growth of the Tinley Cocktails and Tinley ’27 lines.”
Like any start-up, Tinley is trying to position itself to exploit the biggest future revenue streams.
It is making a heavy bet on its “alcohol-free, cannabis-infused beverages inspired by classic spirits, liqueurs and cocktails.”
As we wrote late last year: “there is an opportunity brewing in the weed space for beverage companies.”
- According to Transparency Market Research, the $1.6 trillion global non-alcoholic beverage market will reach $1.9 trillion by 2020 – expanding about 4% a year over that time.
- In 2017, The North American marijuana market reached $9.7 billion – up 35% from 2016, according to ArcView Market Research.
In the final two months of 2017, TNY stock surged from .30 – to $1.97 (a 600% rise); since then stock has settled back to .54 – as the market waits for Tinley to gain traction in the rich California weed and hemp market.
TNY is chasing a very big prize.
There are obstacles.
Tinley’s team has been honest with its shareholders in identifying and assessing the obstacles.
We believe the company is going to play an important role in the California weed-beverage market.
As global marijuana laws change, this will give Tinley massive leverage into untapped foreign markets.
Full Disclosure: Tinley is an Equity Guru marketing client, and we own stock.