By Kalyan Kumar
Shares of New Age Beverages Corp surged close to 39 percent after it stitched a distribution deal with retail giant Walmart for selling its Marley brand of drinks.
The Walmart deal is New Age’s first national distribution pact. New Age Beverages took over the assets of Marley Beverage Co in mid-2017.
The NBEV stock zoomed 38.5 percent at the market close, 4 pm EDT according to Yahoo Finance. The shares-ally in New York was six times higher than its average daily trading volume. The stock has been up 25 percent this year.
For New Age, the stock surge gives a new lease of life after the struggle in 2018 where it missed numbers in most quarters including Q4.
Cannabis CBD based drinks in the pipeline
Under the deal, Walmart will distribute three flavors of Marley Mate. New Age said the sale would start in April and the Marley Mate natural energy drink will have a unique “taste of tea and the uplift of coffee without the crash.”
The cannabis CBD infused drinks of New Age Beverages are expected to be launched this year. Sources affirm that Marley Mellow Mood + CBD’s global launch will follow later in 2019.
But Walmart has not committed the distribution of the Marley + CBD item, according to spokesperson Molly Blakeman.
The CBD ingredient found in marijuana is harmless and has no euphoric effects. There are medical properties just as CBD oil and is claimed to cure conditions like arthritis and insomnia.
Marley products to be a growth driver
Colorado, Utah-based organic and natural beverage company New Age Beverages Corporation is aiming to become a top healthy beverages company with new offerings.
The complete redevelopment of the Marley portfolio follows its acquisition in mid-2017. It mandates the launch of Organic Marley Mate and Marley Cold Brew.
Marley Mate is an organic yerba mate beverage grown in the subtropical rainforests of South America. It is consumed more than 6 to 1 over coffee in many South American countries and is rich in antioxidants, polyphenols, and xanthines.
New Age’s Marley Mate has low sugar, low calorie, and low carbohydrate yerba mate when compared to other competitors, said a press release.
Craig Thibodeau, VP, Key Accounts for New Age said, it is a “great accomplishment for New Age to gain its first national distribution, and to do so with the world’s largest retailer in Walmart.” Customers shop at a Walmart store on January 17, 2017 in Skokie, Illinois. The shares of New Age Beverages Corp surged after the company stitched a distribution deal with Walmart for retailing its Marley brand of drinks. Photo: Photo by Scott Olson/Getty Images
Marijuana investors lapped up New Age stock in 2018 after it announced plans to start cannabidiol (CBD) centric drink and the stock zoomed but retreated later on.
However, BEV continued to be one of the best-performing cannabis-related stocks just like Tilray stock. Investors are pinning new hopes on the BEV stock after it reiterated that Marley Mellow Mood + CBD will be out later this year.