Highsnobiety

Arizona Beverage Co., the company behind Arizona Iced Tea, is entering the cannabis market, The Wall Street Journal reports. The beverage company is partnering with Denver-based cannabis company Dixie Brands Inc. for the venture, as Dixie will both manufacture and sell the products through licensed dispensaries. Dixie currently makes and sells weed vaporizers, candies, drinks, tinctures, and topical creams in five US states.

“You’ve got to be willing to try things,” said Don Vultaggio, Arizona’s chairman and CEO. “The upside is we’re one of the first ones in an emerging space.”

Arizona is expected to begin its cannabis venture with vape pens and gummies, followed by beverages that may include tea, lemonade, soda, coffee, or seltzer. Dixie will begin selling the items in the US before transitioning to Canada and Latin America.

Other beverage companies such as Corona brewer Constellation Brands Inc. and Coors Light brewer Molson Coors Brewing Co. have already begun to develop cannabis drinks, but Arizona hopes to be one of the first to officially enter the market.

The Wall Street Journal goes on to point out that Arizona is searching for new avenues of growth as its core tea business continues to decline. The company is still the leading US ice tea brand by sales volume, but its market share has been decreasing for years.

Most recently Arizona Iced Tea collaborated with adidas on a sneaker release that was eventually shut down due to acts of violence.

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