Hill Street Beverage Company Inc (CVE:BEER) (OCTMKTS:HSEEF) reported a boost to its plans for cannabis infused drinks as it struck a production deal with Peak Processing Solutions.
The latter is a Canadian cannabis co-packing and white label product manufacturing firm, currently completing its purpose-built, world-class beverage and consumer products production facility.
Peak still needs to receive its Health Canada licence to manufacture cannabis edibles, which is expected early next year.
Hill Street has inked a non-binding and non-exclusive letter of intent to produce cannabis infused beverages at Peak's facility. Under the deal, Peak will manufacture strategic products in specific formats, which are attractive to Hill Street's cannabis edibles consumers.
"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," said Terry Donnelly, chairman and chief executive at Hill Street.
"Their production facilities and standards are an excellent fit for our requirements, and their strict adherence to safety and quality procedures as well as the compliance requirements mandated by Health Canada are essential to our brand.
"We could not be more delighted to partner with Peak's world-class team of experts who have deep experience working with the biggest names in cannabis and consumer packaged goods manufacturing. Leveraging Peak's competencies with Hill Street's extensive history of developing award-winning, nonalcoholic brands, we expect that this partnership will prove to be one of the cornerstones of our success in the cannabis sector," he added.
With the introduction of the "Cannabis 2.0" legislation this year, edibles, infused beverages, and vapes can be legally bought and sold across Canada.
Hill Street's products include Hill Street Craft Brewed Lager, Vin(Zero) wines, and Vintense wines, and have won numerous medals and accolades around the world.