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AriZona Iced Tea Maker Enters Cannabis Industry

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AriZona Beverages, the company responsible for America’s favorite iced tea, AriZona Iced Tea, has entered the cannabis industry through a licensing deal with Dixie Brands Inc., according to an Aug. 7 press release. Dixie Brands is an industry leading cannabis company that is based in Denver, Colorado. The company is notorious for its vaporizers, edibles, drinkables and topicals, which are sold across the nation in five different states. 

Dixie Brands and AriZona Beverages penned a deal on Aug. 2 to partner for the distribution, production and sale of cannabis products that contain THC. The concept and branding of the THC products will be conceptualized through the companies’ affiliated entity, Herbal Enterprises, LLC. Dixie Brands will be responsible for distributing, formulating and manufacturing the AriZona-branded cannabis products. This expansion into the cannabis industry is a natural progression for two forward-thinking, successful brands. 

“AriZona has always led the way in product innovation,” said AriZona Beverages Chairman Don Vultaggio. “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. The cannabis category is an ideal space to bring the flavor 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. Both companies share a heritage of quality, excellence in manufacturing, and doing things the right way, and we look forward to all this partnership has in store.”

The CEO of Dixie Brands, Chuck Smith, shared in Charman Vultaggio’s sentiment of this epic partnership, recognizing the combined power of both mega-brands. “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,” said Smith. “For nearly a decade Dixie Brands has crafted award-winning cannabis-infused products creating some of the most recognized and trusted brands in the industry, and we are thrilled to have found a partner that shares our values.”

The partnership is currently operating under a three-year term with a renewal option of two additional terms of two years each. More details of the agreement will be announced once a definitive agreement has been signed.

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