Earlier this month, The Tinley Beverage Company (TNY.C) announced that its 20,000 sq. foot bottling facility in Long Beach, California is now licensed for cannabis manufacturing by the State of California.

Tinley’s bottling facility has been awarded a “Type N Cannabis Manufacturing License” for the “production and packaging of all forms of cannabis-infused products including topicals, edibles and beverages”.

The initial run of Tinley’s ’27 products will include the Company’s new Tinley’s ’27 Arabica Cask.  This extends the range of the TNY’s existing multi-serve products which include the Emerald Cup-winning Coconut Cask.

Tinley’s messaging-to-investors is bifurcated:

  1. We create non-alcoholic THC beverages.
    2. We create non-alcoholic non-THC beverages.

Ideally, a publicly traded company has one message – not two – however as things play out, this could strengthen the bottom-line: both components of Tinley’s business objectives are “on trend”.

There are lots of folks who like THC but do not want smoke in their lungs or chunks of cannabis-chocolate in their bellies.

The global cannabis beverages market size is expected to reach USD $2.8 billion by 2025, expanding at a CAGR of 17.8% according to a report by Grand View Research.

Other folks are consciously-uncoupling from alcohol.

“Millennials are driving the mindful drinking movement,” reports Nielsen, “as 66% say they’re making efforts this year to reduce their alcohol consumption—well above the average 47% among all U.S. consumers 21 and older.”

Non-alcoholic beverages are worth $7 billion more than just four years ago,” continues the report, “In the last year alone, retail sales of non-alcoholic beverages have posted sales growth of $1.1 billion.”

Tinley’s branded cannabis-infused beverages are available in licensed dispensaries and delivery services throughout California.

In the excellent video below, Rick Gillis, President of Tinley Beverage Co, takes Deep Dive viewers on a tour of the new bottling facility.

The prestigious Emerald Cup is the largest cannabis competition in the world, with 65 judges and over 600 entries across more than 25 product categories.

In December 2019, Tinley Tonics High Horse and Tinley ’27 Coconut Cask beverages won 1st and 2nd prize respectively in the cannabis-infused beverage category.

Each 12 ounce bottle is formulated to contain a 5mg micro-dose of THC, providing a light effect comparable to a single cocktail, but with a whole-plant sativa cannabis experience instead of an alcohol effect.

Tinley’s Stone Daisy non-alcoholic, cannabis-infused tonic is a wildly popular Mexican beverage with “blue agave, lime essences and premium sativa cannabis for a social, euphoric effect.”

Sounds fatting?

Not so.

30 calories per bottle.

“I love that these are vegan!,” wrote AmyFlynn on the review site, Leafly.com, “Smiley face emoji inserted here! Amazing taste compared to any other infused beverages I’ve tried in San Fran”

“This is the first time I’ve tried a thc beverage that tasted legitimately like Alcohol,” wrote ConnorMcCain. “Really cool. I am a frequent Cannabis user & I was surprised to feel the effects of the drink within about 10 minutes.”

“These guys are on to something,” reported Vinyls, “I have tried a lot of infused beverages but not any that are focused on popular alcoholic drinks. I had 4 stone daisy’s to myself yesterday & when I awoke today I felt great. Just another day in so-cal! Very cool, what a great drink for the beach this summer.”

32 Leafly reviewers gave “Stone Daisy” a 4.9 rating out of 5.0.

The Beckett’s branded non-THC versions are available in mainstream food, beverage and specialty retailers throughout California and elsewhere in the USA.

On May 27, 2020 Tinley released financials and operational update:

Highlights:

  • Capital expenditures grew Tinley’s asset base to over $7 million – driven by the completion of Phase 3 bottling facility development in Long Beach, California
  • Revenue guidance for Q1/2020 of over $170,000, more than double all of fiscal 2019, with gross margins exceeding 40%.
  • Signed an agreement for Canadian expansion with Great North Distributors.
  • Doubled the number of dispensaries where the Company’s infused products are available.
  • Home delivery network covers over 90% of the population of California.
  • Negotiated agreements with a pipeline of co-packing clients, which the Company expects to consummate once Long Beach nears final approval.
  • Appointed two-time NBA All-Star Baron Davis to the Advisory Board.
  • Delivered its non-infused “Beckett’s” products to BevMo’s 150-store California network.
  • Became approved vendors for its non-infused products at 2 major national chains, and secured requests at two other major chains, collectively representing over 6,000 stores across the USA and Canada.

“Tinley remains steadfast in its mission to create products that easily integrate with consumers’ existing social use occasions,” stated Ted Zittell, Director of Tinley, “as we ease the transition of new consumers into consumable cannabis through familiar, premium-tasting drinks”.

Following its receipt of the “Type N Cannabis Manufacturing License” Tinley can now “consummate agreements in its pipeline of prospective co-packing clients.”

– Lukas Kane

Full Disclosure: Tinley is an Equity Guru marketing client.

Written By:

Lukas Kane

Lukas Kane was previously the CEO of a North American investment news syndicate. He was also the Communication Director for a consortium of publicly traded companies. A Senior Writer at Equity.Guru, Mr. Kane writes about mining, cannabis, energy, technology and biotech.

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