Weed-Infused Arizona Iced Tea
Arizona Beverage publicized its licensing deal with Dixie Brands, which makes and retails THC-infused drinks, gummies, chocolates, and topical creams.
Dixie Brands operates in six states in the U.S and will manufacture and distribute the launched products with the branded Arizona name. The featured infused products will be sold in licensed dispensaries.
This large deal gave Arizona the right to acquire a take of up to $10 million in a partnered cannabis company. This agreement is just one of the many examples of large consumer companies entering the cannabis market.
As a private company, like Arizona, there is much more leeway in stepping into an opportunity like this. Entering the cannabis industry is new and exciting for large brands but there are downsides for the legalities behind retailing cannabis products.
Even though marijuana is recreationally legal for only 11 states, it remains prohibited by federal law. Profits that come from marijuana sales have the possibility of being restricted from banks. Additionally, cannabis from states that are legalized can’t be transported across state lines.