AGH launches its own drink brand into Canadian Market

Today, our latest Investment Althea Group Holdings (ASX:AGH) launched its own brand of THC drinks into the Canadian Market, “Snap Back”:

AGH generally sells the “picks and shovels” to the THC beverage industry - allowing any brand to use AGH’s bottling facility and THC emulsification technology to create its own THC drinks…

Today, AGH has decided to build up its own brand of drinks.

One of the key reasons we invested in AGH was its ability to create its own brands and for one of those brands to go “viral”:

Many drink brands have gone viral in the past, capturing the attention and flavours of consumers with different preferences and unmet needs.

Think of brands like WhiteClaw (seltzers) or Liquid Death (canned soda water) - innovative brands that become huge sellers in the market.

(not all brands are successful, many fail for various different reasons - past performance of WhiteClaw or Liquid Death is not a future indicator of performance of Snap Back brand).

To get an idea of the “upside” in what a viral drink can do.. Pamos created a cannabis spirit, which generates US$20-30M in revenue each year “up essentially from nothing in 2023”.

If AGH is able to capture the consumer imagination with these Snap Back drinks it could capture higher margins on its products downstream.

While there will be initial marketing, distribution and sales costs associated with owning its brand - AGH is able to capture more of the value as the maker and distributor.

We hope that this new beverage line helps AGH reach its goal of capacity at its 15,000 square foot facility in Canada which is only at 22% utilisation:

(Source)