- Formal launch of joint venture company, CLV Frontier Brands Pty Ltd (CLV), which plans to develop and globally commercialize a premium portfolio of alcoholic and non-alcoholic beverages with cannabis and hemp ingredients.
- CLV on target to ship first test batch of the initial beer range in April / May 2018, with commercial sales expected to commence in June / July 2018.
- Worldwide commercialization will span various continents tapping in on the networks of all three companies. Large network of distribution partners already identified.
MONTREAL, Jan. 11, 2018 /CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) ("LGC") is pleased to announce that it has formally launched its new joint venture company with Creso Pharma Limited (ASX: CPH) and Baltic Beer Company Ltd to capitalize on the fast-growing cannabis and hemp-derived beverage markets.
The joint venture company – CLV Frontier Brands Pty Ltd ("CLV") – will develop and globally commercialize a premium portfolio of cannabis and hemp-derived alcoholic and non-alcoholic beverages containing various ingredients, seeds, extracts and terpenes from hemp and cannabis plants.
The launch of CLV follows the announcement in November 2017 of a binding letter of intent among the three parties and the formation of the joint venture company.
CLV is currently developing an initial premium four-beer range containing unique cannabis terpene mixes as well as other innovative ingredients. CLV also intends to create a vegan line of beverages for consumers who demand this option. These unique terpenes will carry the flavour and aroma of cannabis and will provide a sensual cannabis experience, but will not contain THC or CBD or any other cannabinoids.
Each of LGC, Creso Pharma and Baltic Beer will have a one-third interest in CLV. LGC's involvement in the joint venture is subject to the approval of the TSX Venture Exchange.
Initial Test Batch Shipment and Global Commercial Launch on Track
CLV is currently on target to ship the first test batch of an initial four-beer range containing cannabis-derived terpenes in April / May 2018, with commercial sales expected to commence in June / July 2018.
CLV has already identified potential distribution partners in Europe, far East Asia, Central and Latin America, Canada, Africa, Australia and New Zealand and also plans to expand its portfolio into other alcoholic and non-alcoholic beverages over time.
CLV intends to establish a pilot R&D brewing facility in Tallinn, Estonia which will be dedicated to working on innovative recipes and developing proprietary know-how and IP which will be registered by the joint venture. CLV will distribute and market products strictly in compliance with all local laws.
Global Market Opportunity
The launch of CLV comes at a time when there is growing interest in the cannabis and hemp-derived beverage market, which is experiencing strong growth.
In October 2017, global beverage conglomerate Constellation Brands (NYSE: STZ) took a 9.9% stake in cannabis group, Canopy Growth, for a total of US$200 million in order to develop and market cannabis-infused drinks.
Meanwhile, the global craft beer market is predicted to grow at a compound annual growth rate (CAGR) of 11.04% between 2017 and 2021, with the European, Middle East and African markets expected to reach US$38.36 billion in 2021. The craft beer market in the APAC region is also growing strongly at a CAGR of 16.14%.
CLV's Board comprises LGC's President and Chief Executive Officer John McMullen, Creso Pharma's Chief Executive Officer Dr. Miri Halperin Wernli, and Baltic Beer Company Director Alex Klaos, whose role will be to oversee the day-to-day operations of CLV to ensure product development, growth targets and distribution reach are achieved.
John McMullen, CEO of LGC states, "LGC immediately recognized the potential of this joint venture, while working with Creso Pharma and Baltic Beer Company, to plan the development and commercialization of our new innovative products. We are very confident that the beverages that are developed through this joint venture will be well received. The worldwide commercialization plan is aggressive and I fully expect it will have a positive impact on the revenue stream for all parties involved."
Dr. Miri Halperin Wernli, CEO of Creso Pharma states, "We are a global leader in cannabis innovation, developing hemp and cannabis derived therapeutic and lifestyle products and are committed to becoming a leading global player in the cannabis space through disruptive efficiency and innovation. Our approach is to partner with industry and technology leaders to develop and commercialize innovative products which will capture the consumers' senses and imagination. Entering the cannabis derived beverages market exemplifies this approach and will build on our scientific and technical expertise as well as on our vast geographical reach for commercialization."
What are terpenes?
Cannabis terpenes are fragrant oils that give cannabis its aromatic diversity
- They are what give Blueberry its signature berry smell and Lavender its sweet floral aroma.
- At least 200 terpenes have been identified in cannabis and these molecules are potent and believed to affect both animal and human behaviour.
- These oils are secreted in the flower's sticky resin glands, the same ones that produce THC, CBD and other cannabinoids.
- Like cannabinoids, terpenes bind to receptors in the brain and give rise to various effects.
- As flavouring agents, terpenes raise no safety concerns. They are Generally Recognized As Safe ("GRAS") as attested by the U.S. Food and Drug Administration (FDA) classifying them as food additives, and by the Food and Extract Manufacturers Association and other world regulatory bodies classifying them as Safe (see WHO1/ FEMA GRAS2).
About LGC (http://www.lgc-capital.com)
LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG). LGC's objective is to become a diversified business group with core business divisions that provide shareholders with exposure to a diverse range of businesses, products and services.
About Creso Pharma
Creso Pharma is bringing the best of Cannabis to better the lives of people and animals. Creso brings pharmaceutical expertise and methodological rigour to the world of medicinal cannabis and strives for the highest quality in its products. It is a global leader in medicinal cannabis and cannabidiol (CBD) innovation and developing cannabis and hemp-derived therapeutic-grade CBD nutraceuticals and medicinal cannabis products with wide patient reach for human and animal health. Creso uses GMP development and manufacturing standards for its products as a reference of quality excellence with initial product registrations in Switzerland. Creso has worldwide rights for a number of unique and proprietary innovative delivery technologies which enhance the bioavailability and absorption of cannabinoids.
About Baltic Beer Company Ltd:
A UK based company that created and markets an iconic Estonian beer brand called Viru Premium Estonian Beer. Viru beer is currently sold in numerous markets around the world including Australia, China, UK, Italy and Mexico to name a few and has won multiple awards including gold medals at Monde Selection, Brussels and the World Beer Championships Chicago.
This press release may contain forward-looking statements with respect to LGC Capital Ltd. ("LGC") and CLV Frontier Brands Pty Ltd ("CLV"), and their respective operations, strategy, investments, financial performance and condition. These statements generally can be identified by use of forward- looking words such as "may", "will", "expect", "estimate", "anticipate", "intends", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of LGC and CLV, and of the joint venture described herein, could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under "Risk Factors and Risk Management" in LGC's Management's Discussion and Analysis for the fiscal year ended September 30, 2016, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and neither LGC nor CLV has any obligation to update such statements, except to the extent required by applicable securities laws.
Caution Regarding Press Releases
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE LGC Capital Ltd
For further information: John McMullen, Chief Executive Officer, Tel.: (416) 803-0698, Email: [email protected]; London contact: Anthony Samaha, Chief Financial Officer, Tel.: +44 (0) 20 7440 0640; Investor Relations: Dave Burwell, The Howard Group Inc., Tel.: (403) 221-9015, Toll Free: 1-888-221-0915, Email: [email protected]