If all goes according to plan over the next few quarters, hemp-infused drinks business Tinley Beverage Company (Tinley Beverage Company Stock Quote, Chart, News CSE:TNY) should be a breakout leader in the newly emerging cannabis drinkables market, says Bruce Campbell of StoneCastle Investment Management.
And with Canada’s cannabis derivatives industry only weeks away from opening up, the growth potential is enormous in the space, Campbell added.
“Tinley is one that we don’t own right now but we certainly have it on our radar. That’s going to be a big sector, so if they can deliver on what their goals are, it’d be one to own,” said Campbell, president and portfolio manager at StoneCastle, speaking to BNN Bloomberg on Monday.
“We haven’t had a chance to do an update with the management team from Tinley but just from an overall perspective, I think that the beverages [industry] is going to be fairly significant,” Campbell said.
“We’re seeing it continuing to gain market share in the US, which is where Tinley is, and, obviously, with Constellation Brands entering the market, you know that they’re going to spend a lot of money marketing those products in Canada to begin with, and they’ll build brands that will transfer their way into other areas,” he says.
Santa Monica-based Tinley has a line of non-alcoholic and cannabis-infused beverages and brands and distributes both in California for its THC varieties and across the US with its non-THC versions.
Tinley last month announced a deal with Great North Distributors to distribute its cannabis drinks across Canada, where Cannabis 2.0 is about to hit store shelves in late December and early January.
The company said it is now in search of a Health Canada-licensed manufacturer to make its products and is awaiting approval on its packaging and labelling from the federal regulatory body. (In the November 4 press release, Tinley says that it is currently in “advanced-stage discussions” with a Canadian cannabis company on its line of drinks.)
But while interest in cannabis drinks, chocolates and gummies is now reaching a peak in Canada, the cannabis industry itself has been reeling from inconsistent results from pot companies, delays by the provinces in setting up their markets and a lack of investor support. As a result, the pot stocks have to a name been trashed over the past half year, taking with them names like Tinley, whose share price has been in a steady decline since early May.
Launching in late 2017, TNY took off like a shot and rose to just under $2.00 per share before quickly falling back to its starting price range around $0.75 per share. But for 2019, the stock is now down 32 per cent.
Tinley has a unique line of CBD and THC-based cannabis drinks which look to overcome some of the hurdles for beverages aiming to fashion themselves as alternatives to alcoholic drinks, namely, appearance and taste along with the length of time between ingestion and feeling the effects of the compounds.
In the case of Tinley Tonics, the company says its infusion process not only produces a clean-drinking product but one which takes effect within ten minutes.