Tinley stopped production late last year after California changed legislation regarding the sale and distribution of cannabis-related products in the state.
As a result, the company held back $200,000 worth of products for repackaging to be in compliance with California’s amended packaging and labeling regulations.
Tinley used that time to ramp up production to accommodate the backlog and meet increased demand for their new Stone Daisy and Tinley ’27 lines.
“This is the culmination of an extensive process of development of our facility, equipment, team, science, packaging and products. We are now in a position to produce and ship at scale, supported by an expanded sales team and distribution network,” said Ted Zittell, a director of Tinley.
In May, Tinley completed their phase two expansion of its Coachella Valley bottling facility in California, reducing production cost and turnaround time for each individual batch while boosting their production capacity to 250,000 bottles a month or approximately three million a year.
The company’s cost cutting measures include implementing a direct store delivery model, which minimizes operating costs by selling directly to dispensaries.
The bottling equipment for their phase 3 line has arrived from Italy, and will be installed after the upgrades to the company’s Long Beach, California building are completed.
The new facility will boost the company’s production capacity to 12 million bottles annually, and provide enough space for two extra bottling lines and beverage formats.
The future for Tinley
Tinley’s future success hinges on how well it tastes.
Tinley ’27 products have the same extracts, flavours and spices as their alcoholic counterparts.
Cinnamon Cask is reminiscent of Fireball whisky, but it can also be mixed in cocktails with ginger brew, black tea and lemonade. Almond Cask mixes well with coffee, sodas, fruit juices and popular cocktails like the Alabama Slammer and Amaretto Sour, as well as on poured on top of desserts like tiramisu.
The Tinley ’27 drinks are vegan and gluten-free with 10 calories and one or two grams of natural cane sugar, which is roughly 1/10 of other drinks.
Canaccord Genuity estimates that cannabis-infused beverages could become a $600 million market in the U.S. in the next four years.
If Tinley is able to continue meeting its sales milestones, it might secure a chunk of the $240 million THC infused beverages market.
Revenue for these products could theoretically outpace the demand for cannabis products by over two times, effectively capturing 20% of the edibles market by 2022.
Shares rose today by $0.06 to close at $0.84.
Currently Tinley has 91,427,034 issued and outstanding shares with a market cap of $76.7 million.
Full disclosure: The Tinley Beverage Company is an Equity.Guru marketing client.