AriZona and Dixie Brands form partnership for THC-infused line – FoodBev.com

AriZona Beverages has partnered with cannabis company Dixie Brands to produce marijuana-infused products containing tetrahydrocannabinol (THC).

As part of the agreement, Dixie will manufacture and distribute the new products branded under the AriZona name.

Dixie, which operates in six US states, currently produces a range of cannabis-infused chocolates, gummies and elixirs.

The initial term of the partnership is three years, with an option to renew for up to two additional terms of two years each. The deal also gives AriZona the right to buy a stake of up to $10 million in Dixie.

“The cannabis market is an important emerging category, and we’ve maintained our independence as a private business to be positioned to lead and seize generation-defining opportunities exactly like this one,” said Don Vultaggio, chairman of AriZona Beverages.

“The cannabis category is an ideal space to bring the flavour and fun of AriZona into new and exciting products, and we selected Dixie Brands as our partner to bring these products to market after touring their best-in-class manufacturing facilities, and spending considerable time building a strong relationship with their management.”

Dixie Brands CEO Chuck Smith added: “AriZona is a power brand and the most iconic and recognized CPG brand to extend into the cannabis market, providing the evolving cannabis consumer with a fun and flavorful experience alongside an iconic brand they know and love.

“For nearly a decade, Dixie Brands has crafted award-winning cannabis-infused products, creating some of the most recognised and trusted brands in the industry, and we are thrilled to have found a partner that shares our values.

“This partnership marks a watershed moment for the popularisation and expansion of the cannabis sector overall, and is another large step forward for Dixie Brands’ strategy to build a house of famous cannabis CPG brands.”

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