The Tinley Beverage Company (TNY.C) announced today that, in cooperating with Stem Holdings, it will be integrating Stem’s technology into the Company’s website, enabling a fast home delivery solution for cannabis-infused beverages throughout California.
“Home delivery is booming and is an increasingly important part of our growth strategy as well as those of our third-party manufacturing clients…Cannabis beverage consumers are often new or casual cannabis users that may not frequently visit dispensaries. They purchase for home delivery across more consumer categories than ever before, so this collaboration can help bridge the gap for new and mainstream alcohol consumers to build cannabis-beverage consumption into their personal and social use occasions,” said Sven Stalley, General Manager of Tinley’s California.
With this in mind, less than 15% of California’s adult population have consumed cannabis in the past year. Although California represents the United State’s largest cannabis market, many Californians are averse to smoking and may not frequent dispensaries. In order to target this largely untapped consumer base of canna-curious consumers, Tinley and Stem intend to create a variety of beverage-specific online portals that enable outreach and engagement. In doing so, Tinley believes its cannabis-infused beverage will encourage canna-curious customers to transition to cannabis.
Led by Adam Berk, founder and CEO of what is now known as GrubHub, Stem’s proprietary home delivery network Budee™ reaches 92% of California’s population for delivery within two hours or by a scheduled time. By integrating Stem’s licensed technology into its website, Tinley will be able to offer its consumers product delivery via Budee™. Additionally, Stem’s home delivery platform will now feature Tinley’s flagship products. On the contrary, Tinley will offer the option of participation in Budee™ to approved third-party brands who manufacture their beverages at the Company’s Long Beach bottling facility in California.
“Tinley’s growing lineup of Tinley’s and third-party beverages expands Stem’s access to a growing portfolio of high-quality drinks, as well as opportunities for working with these brands on collaborative, drink-specific marketing…Access to unique products and category-specific marketing was a key component of Osmio’s growth, and the opportunity to innovate and collaboration with Tinley enables us to employ similar tactics within the cannabis industry,” said Adam Berk, CEO of Stem Holdings.
Overall, this sounds like a pretty thirst-quenching deal for both Stem and Tinley. With over 400,000 consumers opting for cannabis delivery in 2020, California presents itself as a lucrative market for companies like Stem who bring cannabis right to your door. In cooperating with Stem, Tinley will now have access to a booming demographic of ecommerce shoppers who frequent Stem’s popular Budee™ cannabis delivery platform.
Tinley Beverage Company’s share price opened at $0.41 today and is currently trading at $0.415 as of 9:37AM ET. The Company’s shares are up 3.75%, indicating that there has been some change following the news.