Hill Street Beverage Company
Bringing Cannabis-Infused and Alcohol-Free Beverages to Canada.
Hill Street Beverage Company Inc. (TSXV:BEER) is a marketer and distributor of alcohol-free beverages leveraging its award-winning brands to create a portfolio of cannabis-infused beers and wines.
Hill Street is preparing to enter the Canadian legal cannabis-infused beverages segment and expects to have products available for purchase by Spring 2020. These new beverages will be created using Hill Street’s award-winning alcohol-free products, many of which are currently sold in over 7,500 points of distribution across Canada, including at Loblaws (TSX:L), Sobeys, Shoppers Drug Mart, Fortino’s, Safeway, The Beer Store, and Zehrs.
Hill Street has a 10-year Joint Manufacturing Partnership (JMP) agreement with Lexaria Bioscience Corp. (CSE:LXX,OTCQB:LXRP), whose patented DehydraTECH™ infusion technology is expected to allow Hill Street to infuse its alcohol-free beverage portfolio with cannabis without any impact on the taste or smell of the beverage. This technology not only turns cannabis oil into a water-soluble and shelf-stable powder, it also eliminates the need for potentially risky nano-emulsions, which are commonly used across the cannabis industry. Recent news on the potential risks of using nano-emulsion technologies have caused the Quebec government to ban their use in cannabis products, and have resulted in leading experts demanding more research into their long term effects on health before they are used in beverages.
Additional benefits of the patented Lexaria process are the rapid onset of as little as two minutes to feel the effects of THC or CBD, and a duration of intoxication that mimics the effect of alcohol. These effects work not only in beverages using Lexaria’s technology, but also in edible food products such as gummies and chocolates, powdered drink mixes and dry beverages such as tea and coffee, and baked goods such as brownies and cookies. Hill Street’s partnership with Lexaria is expected to allow them to sell the powder as an ingredient to other cannabis product companies, and also in the form of pills, tablets, capsules and drink mixes as consumer products.
The partners plan to produce DehydraTECH™ commercial products under a new brand to be announced, including both processed THC and CBD powders in the form of compressed tablets, capsules, or sachets. These consumer products are intended for sale in Canada and for export where permitted, subject to Health Canada approval. The companies also plan to sell cannabis powder made using the DehydraTECH technology as an ingredient to other cannabis edibles manufacturers.
In November 2019, Hill Street signed an LOI with Peak Processing Solutions to produce cannabis-infused beverages. Production would take place at a purpose-built facility operated by Peak Processing, a Canadian cannabis co-packing and white label consumer product manufacturing services firm. Peak’s production capabilities are expected to address consumer demand for Hill Street’s growing portfolio of cannabis products. “Strategically, as our first key cannabis production partner, Peak will have the entire process we need to produce, fill and package our cannabis-infused beverages,” commented Terry Donnelly, Chairman & CEO of Hill Street. Peak is working to obtain its Health Canada license to manufacture cannabis edibles, with a completion goal of early 2020.
Hill Street has partnered with numerous not-for-profit medical research organizations within Canada to promote healthy alternatives to alcohol and to highlight the risks associated with alcohol consumption. These partnerships expose the Hill Street brand to the millions of people associated with these organizations. They help to drive awareness for the company’s current alcohol-free products, and legitimize its future cannabis offerings.
Hill Street’s management team holds approximately 38 percent of the company’s shares.
Hill Street’s Company Highlights
- Alcohol-free beverages producer with a presence in over 7,500 points of distribution across Canada including major grocery and drug retail chains.
- Expected to enter the cannabis-infused beverage space once cannabis-edibles become legal in October 2019, with product available for sale by Spring 2020.
- Hill Street products have won three gold, two silver, and two bronze medals at the US Open Beer Championships, a Retail Council of Canada’s Grand Prix award, and a Double Gold medal at the prestigious San Francisco International Wine Challenge.
- Hill Street co-founded and co-chairs the Cannabis Beverage Producers Alliance, a unified body of manufacturers, industry professionals, and advisers who advocate for the safe, reliable and responsible production of legal cannabis beverages.
- 10-year joint manufacturing partnership with Lexaria Bioscience Corp. (CSE:LXX,OTCQB:LXRP) using patented DehydraTECH™ infusion technology in a new branded product line.
- Only company in the world to have earned a license to use DehydraTECH ™ infusion technology globally.
- Led by an experienced management team with numerous years of significant beverage experience.
- Management holds approximately 38 percent of the company’s shares.