The maker of the 99¢ Arizona iced tea is partnering with a Denver-based marijuana company to bring its own cannabis-infused products, starting with vape pens and THC-infused gummies. Arizona Beverage announced Tuesday that Dixie Brands will be developing and producing a new portfolio of Arizona-branded consumer goods infused with THC.
Through the partnership, Dixie Brands, which makes and sells cannabis-infused drinks, chocolates, gummies and topical creams, will manufacture and distribute products branded with Arizona’s name. These products will be sold via licensed dispensaries in states that have legalized marijuana. The deal will also give Arizona the right to buy a stake of up to $10 million in Dixie Brands.
“This partnership marks a watershed moment for the popularization and expansion of the cannabis sector overall, and is another large step forward for Dixie Brands’ strategy to build a house of famous cannabis … brands,” Chuck Smith, CEO of Dixie Brands, said. Arizona is “the most iconic and recognized” brand to enter the cannabis market to date.
Although the partnership didn’t say what kind of products will be produced, its likely drinks will be among the items. Arizona’s namesake 99¢ iced teas can be found at a variety of convenience stores and supermarkets around the country, which could indicate that marijuana products are becoming closer to the mainstream.
“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 in a press release. “The cannabis category is an ideal space to bring the flavor and fun of AriZona into new and exciting products.”