Arizona Iced Tea maker will likely start selling vape pens, weed gummies, and marijuana-infused beve

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Sep 19, 2009
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Mariposa County CA
From Business Insider
Arizona Iced Tea maker will likely start selling vape pens, weed gummies, and marijuana-infused beverages after reported deal with cannabis company

Kate Taylor
Aug. 7, 2019, 9:56 AM
The company behind Arizona Iced Tea is reportedly getting into the marijuana business.

Arizona Beverage Co. has reached a licensing deal with cannabis company Dixie Brands Inc., Jennifer Maloney reported in The Wall Street Journal on Wednesday.

"Plans for the Arizona line are in the early stages," Maloney reports. "It is likely to start with vape pens and gummies, followed by a variety of beverages that could include tea, lemonade, soda, coffee or seltzer, officials said."

Arizona did not immediately respond to Business Insider's request for comment.

The reported move would make Arizona one of the first big beverage brands in the US to begin selling marijuana.

Beer giants have been eyeing the market, with Constellation Brands and Molson Coors penning deals with cannabis companies. Last year, Heineken's Lagunitas debuted a marijuana-infused sparkling-water beverage in California.

While there have been reports of Coca-Cola and PepsiCo considering the space, neither company has made any formal deals with cannabis companies. In June, Brett O'Brien, senior vice president of PepsiCo-owned Gatorade, told industry publication Beverage Digest the company is "not shying away from CBD" while developing its new hydration beverage Bolt24.

"You've got to be willing to try things," Arizona CEO Don Vultaggio told The Journal of the deal with Dixie Brands. "The upside is we're one of the first ones in an emerging space."

Arizona Iced Tea has gotten press for some unexpected marketing moves in recent months.

In May, the company partnered with chef Danny Bowien to create an Arizona Iced Tea-inspired menu served at Bowien's Mission Chinese location in Brooklyn, New York. In July, police shut down a pop-up selling Arizona Iced Tea-branded Adidas for $0.99 after two teenagers were assaulted in the mob of Arizona-loving sneakerheads.

Read more: Marijuana could be the biggest growth opportunity for struggling beverage-makers as millennials ditch beer for pot


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