Cannabis beverages are currently a billion-dollar a year business.
And that number is on track to increase by a billion dollars more each year over the next 7 years… predicted to reach over $8 billion by 2028!
We’re looking at a compound annual growth rate of 35.1 percent!
From an investor’s perspective, that’s staggering.
For comparison, sales of sports and energy drinks are down by over 11% from last year.
This huge shift in market demand isn’t going unnoticed by investors…
So who’s taking advantage of this exploding market?
Everyone knows legendary investors like Warren Buffet made billions by investing up to half of their portfolios in consumer staples like Coca-Cola and PepsiCo during their rapid growth in the 80’s and 90’s.
Understandably, those same risk-averse Fortune 500 beverage companies were slow to get into the cannabis industry. That turned out to be a costly mistake (a multi-billion $$ mistake)
And now that legalization is accelerating worldwide, we’re intent on catching the next Coca-Cola of the rapidly growing cannabis beverage sector…
The failure of Fortune 500 beverage companies to diversify into these new markets created a massive opportunity for new companies to spearhead this rapidly growing market with specialized product lines and by establishing infrastructure to create a barrier to entry in the cannabis-infused and wellness beverage sector.
And simply put, their competition can’t keep up.
What in the world is happening?
It’s no secret that consumer markets are becoming health conscious faster than brands can keep up.
And it’s equally obvious that cannabis products are exploding in popularity alongside this growing demand for healthier options and legalization efforts around the world.
For many old-school brands, this transition from cheap consumer goods to natural wellness products has been less than impressive. Especially when it comes to that unique and cult-like market where health food meets cannabis.
Since the legalization boom, many cannabis wellness companies have gone from zero to billions almost overnight.
This is largely due to the mega popularity of cannabis wellness products that isn’t slowing down any time soon.
From their seasoned team of Fortune 500 brand-building executives to a robust infrastructure and vast distribution networks across 2 continents, they’re poised to be the biggest player in the sector! Exactly what we’re looking for as investors.
Saying we’re excited about BevCanna is the understatement of fiscal year 2021.
Seeing an undervalued company start dominating its higher-market-cap competition — this is where investing fundamentals meets explosive growth signals.
You’re going to want to hear this…
Just HOW BIG Is The Cannabis Beverage Business?
Answer: Bigger than you think — And it’s growing faster than companies can keep up
Since the explosion in popularity of cannabis wellness beverages, market demand has been shifting away from sports and energy drinks. In a big way!
Cannabis-infused beverages became a billion-dollar market in 2021 and is predicted to be over $8 billion by 2028
The growth of this market has dominated every other beverage category with sales growing 68.4% over the same period last year.
That’s absolutely huge in terms of market demand!
AND most importantly, they’re outpacing their competition in virtually every category…
Who is BevCanna?
BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) is a diversified health & wellness beverage and natural products company. They develop and manufacture a line of alkaline, plant-based and cannabinoid beverages, along with supplements for both in-house brands and white-label clients.
With decades of experience creating, manufacturing and distributing iconic brands to a global market, their team are experts in the wellness and cannabis-infused beverage categories.
- Has ~$90 million in assets and ~$4.5 million in liabilities
- Is fully licensed as a traditional and cannabis beverage manufacturer and distributor
- Commands a vast network of more than 3,000 points of retail and online, and is expanding into U.S. and international markets such as Japan, Philippines, and more to come.
- Owns the market-leading TRACE brand, a line of natural alkaline, and plant-based mineral water.
- Has an established online customer base through its wholly-owned direct to consumer e-commerce brand and platform Pure Therapy
- Has an exclusive partnership with the #1 U.S.cannabis beverage company Keef Brands
- Owns a natural alkaline spring water aquifer, located on 315-acres of land in the BC interior
- Owns and operates out of a world-class 40,000 sq. ft., HACCP and Health Canada certified manufacturing facility
- Has an annual bottling capacity of up to 210 million units.
Side-by-side with their competitors, we agree with the predictions that their market share is going to continue its explosive arc.
We stand behind this due to an influx of massive distribution deals, new international and domestic markets, strategic acquisitions and an executive team that’s largely responsible for some of the biggest growth quarters of Fortune 500 consumer brands like PepsiCo, Unilever, and Colgate.
Folks, this isn’t just a good company in a strong market. It’s a dream team with an incredibly distinct advantage in an industry with a near-prohibitive barrier to entry for new players.
They’re not just a strong competitor in their niche — they’re wildly outpacing their competition in every category
It’s hard to overstate just how well-heeled the BevCanna brand is from every angle.
When new players evaluate whether or not to break into a new market, what they want to understand is the “barrier to entry” — that is, what stands in their way, and what’s required to break into this new market.
Here are the key reasons we believe they’re here to stay and can expect continued and explosive growth:
Strong debt-to-equity ratio
They boast close to $90 million in assets with only ~$4.5 million in liabilities. This is almost unheard of amongst large CPG(Consumer Packaged Goods) companies — most of them are drowning under a mountain of debt with just a trickle of income(if any) to offset it.
Largest independent beverage manufacturer in Canada
With their current infrastructure, they’re able to produce 210 million bottles per annum in a wide range of formats such as aluminum, PET/RPET, and glass. This number is set to increase exponentially as they continue to expand their operations.
They Own Their Own Natural Water Source
BevCanna owns over 300 private acres of land and a pristine alkaline spring aquifer located onsite. This is a HUGE deal since there’s a current moratorium on buying water sources in Canada — putting BevCanna in a dominant position for two reasons:
- It greatly reduces production and manufacturing costs by having their own free water source with no shortage constraints
- Most of their competition is at a huge disadvantage since they have to outsource their water and are subject to supply shortages and high transportation costs
The Canadian cannabis license process is a lengthy process which can take several years to obtain. BevCanna having received their Standard Processing License allows them to process and infuse their cannabis products for in-house brands and white label clients. Additionally, their 292-acre outdoor cultivation site is also licensed by Health Canada.
With contracts that have the ability to more than double this year
Their Canadian market is served through 3,000+ national retailers and online, with contracts in place to expand significantly. Looking to massively increase their bottom line, they’re bolstering their domestic distribution, and launching into the lucrative US market in just a few weeks — starting with California, Illinois and New York. All things considered, BevCanna has the opportunity to add an additional 5,000+ points of retail distribution to their domestic and international network to continue their exponential growth.
Even that sort of massive production increase doesn’t deter them due to the infrastructure and supply lines they’ve brought in-house. With a bottling capacity of 210 million per annum, their competitors won’t be able to keep pace.
Taking their existing blueprint of success throughout all of Canada and their international market share, watch closely for this success to translate in American markets before this next quarter ends.
With their current facilities sprawling across 40,000 square feet, they’ve gotten pre-approval from Canadian regulators to increase the plant by over 4X to 179,000 square feet.
Bigger capacity and infrastructure translates to more sizable contracts with distributors, white-label agreements and acquisitions for brand and market share expansion.
What does all this mean for their competition?
Due to the sheer size and power of their vertical integration, BevCanna(CSE:BEV, Q:BVNNF, FSE:7BC) controls every aspect of their production, manufacturing and distribution — it means that not only are they better established and more self-sustaining than their competition, but that much of their competition literally needs them if they want to expand.
Having these unique advantages has given them a steady and ever-growing momentum within the wellness and cannabis-products markets.
When we’re speaking in terms of the barrier to entry for new competition into this space, it’s outright prohibitive with all the regulatory and supply-chain bureaucracy that comes with it. There’s virtually no way for new companies to have as strong a footing as BevCanna without many years and way too much money.
Again, you just can’t overstate how well-poised BevCanna is for high growth potential in these rapidly growing markets.
“We’re thrilled with the progress that we’ve made in securing commitments for both our cannabis-infused and traditional beverage white-label operations,”— Melise Panetta, BevCanna President
How BevCanna is dominating the beverage business and profiting off their competitors
White-Label partnerships with other beverage companies have given them a unique edge over their competition… meaning many competitors may need BevCanna in order to expand!
BevCanna provides end-to-end, turnkey beverage manufacturing solutions. This gives them a robust in-house operation for their own successful line of wellness and cannabis-infused products, but there’s more…
Their infrastructure and production capacity has become attractive to some of the biggest beverage companies out there. Meaning it’s cheaper for their competitors to work with BevCanna rather than try and take their market share due to the high barrier to entry BevCanna possesses.
Whether it’s for their own in-house brands or working closely with white-label clients to realize their own vision, they create and launch highly customizable products that appeal to a variety of target markets from value, craft or premium positioning.
Essentially, they’re partnering with their fiercest competition through the power of White-labeling.
“We’re also very pleased with the strong response to our co-manufacturing services and are continuing to build our pipeline of clients.”— MELISE PANETTA, BEVCANNA PRESIDENT
They continue to expand with strategic acquisitions and mergers
Adding Significant Sales Through E-Commerce
BevCanna(CSE:BEV, Q:BVNNF, FSE:7BC) Acquired Natural Health and Wellness E-com Retailer Naturally Pure Therapy Products Corp. Pure Therapy is a successful direct-to-consumer E-commerce company selling a range of natural health products, including cannabis-infused products across North America. The Acquisition gives BevCanna a proven online brand and platform to further expand and launch its own proprietary products through!
Acquiring $35 Million Beverage Portfolio
In February of 2021, BevCanna(CSE:BEV, Q:BVNNF, FSE:7BC) acquired the $35 Million powerhouse, Naturo Group, an established beverage and CPG company worth over $35 million. This gives them their own fully-licensed white-label beverage manufacturing and distribution company with a global multi-channel distribution network involving both traditional retail and cannabis sales channels. BevCanna also owns Naturo Group’s flagship brand, TRACE, which is sold in more than 3,000 Canadian retail locations and is expanding domestically and internationally.
When we compare BevCanna’s growing portfolio to their competitors with higher market caps, we realize just how undervalued their stock currently is.
And why we believe it won’t be undervalued much longer as the cannabis beverage market 700% in the next 7 years…
Expanding Both Brick-and-Mortar and Online Markets
BevCanna offers one of the most unique and diverse lines of beverages within the cannabis, alkaline, and plant-based wellness categories.
This makes them attractive and lucrative investments to domestic and international distributors with large market shares.
Examples of this are their new partnership with Riviera which is expanding their product line of beverages into the U.S. market.
Since BevCanna offers one of the most unique and diverse portfolios of beverages within the cannabis, alkaline, and plant-based wellness categories, this partnership with Riviera accelerates the expansion of BevCanna’s(CSE:BEV, Q:BVNNF, FSE:7BC) product line exponentially.
This is in addition to leading North American brand and sales agency Benefit Holdings LLC distributing BevCanna’s TRACE line of products to a wide range of U.S. retailers, from independent natural and specialty retailers to national big-box retailers.
BevCanna has also entered into a bilateral partnership with the award-winning Keef Brands, which currently offers six of the top ten best-selling cannabis beverages in Colorado, as well as three of the top ten best-sellers in California.
“Keef’s robust US manufacturing and distribution network will be a significant asset to BevCanna‘s expansion plans in the US and BevCanna‘s expertise in the Canadian infused beverage market will build Keef’s Canadian presence. It’s a strong combination, with excellent potential for both companies.”— JOHN CAMPBELL, BEVCANNA’S CHIEF FINANCIAL AND STRATEGY OFFICER
The most recent distribution agreement is with one of the largest health food distributors in Eastern Canada, Koyo Foods Inc. We foresee a significant upsurge in BevCanna sales throughout Ontario and Quebec before the quarter is up.
And that’s JUST North America!
Explosive Growth Across International Markets
Expanding further into international markets, we note in April of this year that Bevcanna(CSE:BEV, Q:BVNNF, FSE:7BC) inked an exclusive distribution agreement with Mirai Marketing to bring their proprietary alkaline and plant-based consumer products to Mirai’s massive Japanese and Philippine markets!
The initial term of the agreement will be two years, with exclusivity subject to a minimum net revenue of $1 million over the course of the term and incentives to reach over $5 million during the term.
While they’re maintaining steady growth across North America, stepping into the Asian Markets is further evidence that BevCanna won’t be slowing down any time soon.
Demand is exploding across these diverse markets and new channels are cropping up virtually every week for BevCanna(CSE:BEV, Q:BVNNF, FSE:7BC).
This bodes well for early investors who see all these stars aligning.
BevCanna’s Team — Key Players from PepsiCo, Walmart, FritoLay, and Colgate.
Key executives from companies like PepsiCo, WalMart, FritoLay, Nestlé, Colgate Arrowhead, Costco — we were floored when we saw the caliber of heavy hitters in BevCanna’s ranks.
Orchestrated by BevCanna(CSE:BEV, Q:BVNNF, FSE:7BC) CEO and Founder Marcello Leone, CPG(Consumer Packaged Goods) and wellness brands are what the BevCanna team knows best. They can read the landscape like no other, fully appreciate the competition and have a brilliant track record in igniting demand in high-growth markets.
Seemingly covering every area of expertise, their CFO is a 30 year veteran of investment banking — John Campbell.
They most recently appointed former PepsiCo Executive, Melise Panetta, as their President — accomplished Senior Marketing and Sales executive with an extensive career at SC Johnson, General Mills and PepsiCo.
Driving Force Behind Colgate & Bayer
Melise in turn recruited Bill Niarchos as the company’s Vice President of Sales & Sales Operations to spearhead the influx of new distribution deals, both international and domestic. His previous contributions were to 14 years of successful campaigns with Colgate Palmolive.
Blueprints & Brainpower behind Best Buy, TD Bank, Unilever & Sproutly…
Brain power and blueprints have come together from the most dominant brands across publicly-traded consumer organizations.
Their executive team is par excellence.
Why BevCanna, and Why Now?
Cannabis beverages are currently a billion-dollar-a-year category.
That number is on track to increase by a billion dollars each year over the next 7 years!
BevCanna is an early leader in the healthy beverage and cannabis products industry, which is expected to reach USD$8.52 billion by 2027 at a compound annual growth rate of 50.9 percent.
In layman’s terms, this could be a cash cow for early investors, both retail and institutional.
● The company completed a landmark acquisition of established beverage and nutraceuticals company Naturo Group, which boasts a significant asset base, alkaline and plant-based beverages and nutraceuticals, significant sales and distribution in over 3,000 points of distribution and online, and direct ownership of a 40,000 sq.ft manufacturing facility and an alkaline spring water source.
● The company leverages the recent strategic acquisition of natural health and wellness e-commerce company, Pure Therapy, with a substantial revenue and forecasted positive EBITDA in 2021.
● BevCanna has evolved into diversified health and wellness; beverage and natural products company with close to $90M million in assets on the balance sheet, and a global multi-channel distribution network well-positioned for growth.
How Do They Compare To Their Competition?
What this indicates is that investment in BevCanna is poised to grow exponentially relative to their competitors.
In direct comparisons, we see BevCanna likely to outpace them in terms of infrastructure, distribution, pedigree of Executive board, product line size, debt-to-equity ratio, JV and partnership deals, white-label contracts and revenues relative to the above.
Let’s take a look at their two biggest competitors…
(Market Cap $502M)
- Nominal sales, highly speculative
- Have little more than a license agreement with a 3rd party company to produce their product, in an uncompleted “under construction” factory in terms of assets
- Don’t have the infrastructure or massive distribution network BevCanna(CSE:BEV, Q:BVNNF, FSE:7BC) does
Burcon is another plant-based health foods company without a proven track record. They’re selling blue sky to investors without any actual sales yet. This is a huge gamble and retail investors know it.
HEXO (NYSE: HEXO)
(Market Cap $1.13B)
- Zero white label deals, meaning less potential partnerships than BevCanna has
- Their production capabilities are limited to aluminum and glass while Bevcanna can also produce plastic (and recycled plastic) products in their facilities
In many ways, HEXO parallels BevCanna(CSE:BEV, Q:BVNNF, FSE:7BC) in many ways. They’re a health and wellness cannabis company with a $1 Billion+ market cap, but don’t have near as much traction or capacity as BevCanna in the beverage sector.
So What’s The Gist?
What’s more, they can’t get all those advantages. It would take years and way more money than most financiers are willing to shell out.
BevCanna has a dangerously effective executive team, commands an impressive infrastructure and has a rapidly growing distribution network, both online and brick-and-mortar.
- Vertically integrated(they have such high capacity and strong supply lines that een competitors use them)
- Approx. $90 million in assets
- Approx $4.5 million in liabilities
- Remarkably attractive debt-to-equity ratio
- The only federally licensed producer with cannabis and non-cannabis capabilities.
- Significant distribution channels across North America and East Asia
- Owns diverse line of proprietary cannabis & plant-based health products
- Has large and robust infrastructure
- Able to produce 210 million units per year
- Multiple massive partnerships with distributors and white-label brands
- Impressive balance sheet with exponential growth forecasted in coming weeks and months
We challenge you to find half these growth indicators in any of their competitors with higher market caps…
We’ve done our research and like what we see
In closing, we all look for certain “non-negotiables” when it comes to putting our money into a company.
We want to have confidence in their team: In this case, the team they have is an unfair advantage, bringing decades of experience from the world of Fortune 100 brands.
We want to know that they’re well-established with the infrastructure, production and distribution to become a dominant global brand: BevCanna is already recording significant revenues and opening up new markets faster than their competitors can keep up, with plans to scale substantially.
We want to see continued growth — and everywhere we look, at any given month or quarter, BevCanna is showing us just that.
And we’re all-in!
Your friend in trades,
Before The Bulls
This report is strictly for information purposes only and is neither soliciting you to buy or sell securities. TruTap is not a registered investment advisor nor a broker-dealer. Any information, opinions or analysis contained herein are based on sources seen as trustworthy. There is no explicit or implicit representation as to the accuracy or complete nature of its contents. The present opinions herein reflect our current estimation and are subject to change. TruTap accepts zero liability for losses arising from investor’s use of this material. TruTap has been compensated $82k for coverage of (CSE:BEV, Q:BVNNF, FSE:7BC) by BevCanna this year. TruTap currently holds zero shares of this stock. TruTap or its affiliates may buy shares in the open market at any time without notice. The article contains forward-looking statements, as per the Private Securities Litigation Reform Act(PSLRA), including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words “may”, “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend,” “project,” along with similar wording are to communicate forward-looking statements. Such forward-looking data involves important risks and uncertainties that may influence results. Readers are advised to read and carefully consider any risk indicated and explained in the profiled company’s SEC and/or other government filings. Investing in microcap securities is speculative and carries a high degree of risk. Never invest in stocks discussed on this site unless you can afford to lose your entire investment.