Shares of New Age Beverages Corp (NASDAQ:NBEV) rocketed Thursday in premarket trade after the Denver-based beverage company said it was debuting a new line of CBD-infused beverages at the North American Convenience Store Show next month.
The company said that its "portfolio" of CBD-infused beverages would be on display at the North American Convenience Store show (NACS) at the Las Vegas Convention Center on October 7 through 10.
CBD, which does not produce a high for the user, has been used for medical purposes, including easing inflammation, pain and nausea.
New Age stock soared as much as 36.4% to US$5.96 before the opening bell.
The maker of Marley Cold Brew and Marley Mellow Mood said it began testing a CBD-infused beverage earlier this year in its home market in Colorado.
It said it was now taking “the learnings” it gained in product formulation, taste, efficacy, and dosing to create a portfolio of CBD-infused beverages.
“We believe we have developed unique consumer insights and accessed superior technology in CBD-infused beverages over the past year, and we are excited to share those insights with key retail partners,” Zach Ross, Marley marketing manager at New Age said in a statement.
The company said that with the increased interest from major retailers in North America, New Age intended to unveil its portfolio and category insights with select retail partners at the NACS show.
“We believe we are in a position to bring national leadership to this emerging growth segment, and intend to launch the most efficacious and safe CBD-infused products for consumers, with the most responsible marketing and education to a segment that has potential to be transformative to healthy functional beverages,” said Ross.
Cannabis stocks have been doing a giddy dance after The Coca-Cola Co (NYSE:KO) said in a statement Monday that it is "closely watching" the growth of CBD, a non-psychoactive component in marijuana, as an ingredient in what it called functional wellness beverages.
Both cannabis and CBD are still illegal in the US under federal law, even though several states have legalized marijuana.
Contact Uttara Choudhury at [email protected]