New Age Beverages Corp (NASDAQ:NBEV) is one of the many beneficiaries of the passage of the $867 billion 2018 Farm Bill by the US Senate. The company has seen its shares move higher for the third day in a row. The stock was up by as much as 11.6% at its highs and it could go even higher if President Trump signs the bill into law, which is widely expected. The company’s CBD products such as its CBD tea are compliant with the Farm Bill, which among many other things will legalize the farming of hemp, which is rich in CBD. This is why its passage is imperative for the health beverage firm.
The Colorado-based company is a leading force in the CBD-infused beverage space, basically a brand new industry that could fundamentally change soft drink consumption behavior in the United States.
New Age has confirmed major commitments with several leading retailers
Even as it awaits the President’s endorsement of the bill, New Age is already positioning itself for aggressive expansion, which could be seen as a bit risky in the even that the bill for whatever reason does not become law. The company has rolled out various commitments, whereby it anticipates working with several leading retailers. According to the SVP of Sales Michael Cunningham, the company is preparing to work with DSD distributors.
He says, “The Company expects to launch its CBD-infused products into national accounts as they come on board in conjunction with their April resets.”
Apparently, the company has also established a merger with Morinda Holdings, Inc. This is a direct-to-consumer and E-commerce business, which works with other direct-to-consumer and E-commerce business. New Age CEO Brent Willis asserts that the merger will give them a first mover advantage.
New Age competes in the growth segments of the non-alcoholic beverage industry
The Company has its brands in more than 60 countries internationally and across all 50 states. It has also entered key states where cannabis has been legalized such as Oregon, California, Washington, and Colorado. As the market and the industry continue to expand, New Age is looking forward to launching its CBD-infused products throughout the country.
The company is set to compete in the greater than $1 trillion non-alcoholic beverage industry globally. It has also recorded a partnership with WATERisLIFE, the world’s 5th largest water charity company.
