Caitriana Nicholson

Arizona Beverage Co. Reaches Cannabis Deal with Dixie Brands, Inc.

The AriZona Beverage Co. has announced a partnership for marketing cannabis-infused products with Colorado’s Dixie Brands, Inc.

Full story after the jump.

AriZona Beverage Co., the company that produces AriZona Iced Tea, has reached a deal with Denver, Colorado, based Dixie Brands, Inc. to market cannabis-infused gummies, drinks, and vape pens, the Wall Street Journal reports. The deal, which still needs approval from Dixie’s board, also allows AriZona the right to purchase a $10 million stake in the company.

According to the report, AriZona, based in Woodbury, New York, plans to market teas, lemonades, sodas, coffees, and seltzers in the U.S. and eventually expand into Canada and Latin America. Under the deal, Dixie would produce the products in the states where they are sold.

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

AriZona is not a publicly-traded company and Vultaggio indicated the company would have likely been unable to move forward with the project if the company had been listed on any trading exchanges.

According to the report, AriZona is looking to diversify its products after losing its top spot as the leader of ready-to-drink tea to Pure Leaf, which is a joint venture by Unilever PLC and PepsiCo, Inc. Last year, its market share dropped to 16.2 percent from 23.4 percent in 2013. Over the last two years, AriZona has released new products like beef jerky and fruit snacks, with plans to launch a line of seltzers with fruit juice later this year.


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