Creso Pharma has formally launched its new joint venture company with LGC Capital and Baltic Beer Company to capitalise on the fast-growing cannabis and hemp-derived beverage markets.
The joint venture participants have already identified potential distribution partners around the world, including in Australia and New Zealand, and also plan to expand CLV’s portfolio into other alcoholic and non- alcoholic beverages in time.
The joint venture company – CLV Frontier Brands Pty Ltd (“CLV”) – intends to develop and globally commercialise a bespoke portfolio of cannabis and hemp-derived alcoholic and non-alcoholic beverages containing various ingredients, seeds, extracts and terpenes from hemp and cannabis plants.
The launch of CLV follows the announcement in November 2017 of a binding letter of intent between the three parties and the formation of the joint venture company. The parties have now executed a formal binding joint venture agreement that more specifically outlines the rights and obligations of the parties.
Under the terms of the joint venture, both Creso and LGC will initially contribute €150,000 in start-up capital to CLV and Baltic Beer Company will contribute the equivalent sum by way of services to the company.
It is proposed that CLV will immediately start developing an initial premium four-beer range containing unique cannabis terpene mixes as well as other innovative ingredients.
These unique terpenes will carry the flavor and aroma of cannabis and will provide a sensual cannabis experience but the beverages will not contain any THC or CBD or any other cannabinoids.
CLV is targeting to ship the first test batch of an initial four beer range containing cannabis-derived terpenes in April/May 2018, with commercial sales aimed to commence in the following calendar quarter.
CLV will establish a pilot state-of-the-art R&D brewery facility in Tallinn, Estonia which will be dedicated to work on innovative recipes and to develop proprietary know-how and IP which will be registered by the JV.