XPhyto Therapeutics Corp (CSE:XPHY) (OTCPINK:XPHYF) revealed Wednesday that it has inked a letter of intent for developing, producing and distributing new cannabis-infused beverages and products with the well-known German brewery Oettinger Brauerei GmbH.
The companies have agreed to sign a definitive agreement in due course for creating new cannabis-related beverages and products, XPhyto said.
Oettinger's headquarters are in Oettingen, Bayern but it has large breweries in Gotha, Mönchengladbach and Braunschweig. The dominant brewer has been Germany's best-selling beer brand for a number of years.
"With so much strength and experience in the European beverage industry, Oettinger is an ideal partner for XPhyto. We very much look forward to this collaboration," XPhyto Therapeutics CEO Hugh Rogers said in a statement.
Meanwhile, as previously announced, XPhyto said it will continue its exclusive cannabis research and development agreement with the chair of brewing and beverage technology at the Technical University of Munich, School of Life Sciences Weihenstephan.
"In partnership with Oettinger and supported by Weihenstephan, we plan to establish ourselves as first-movers in Europe in this important and fast-growing market," Rogers added.
Weihenstephan is home to the International Beverage Research Center Weihenstephan, which focuses on the entire drink design process chain — from basic molecular biology research through biotechnology processes to the final product. It has a brewing plant which makes it possible to run a variety of trials to make beers in accordance with the German Purity Law and other fermented beverages using un-malted cereals and alternative starch carriers, as well as non-fermented beverages. The institution has a specific focus on flavor-process engineering, raw material and product design, food safety, and relevant legislative issues, such as EU designated novel foods.
Germany, Europe’s biggest economy, is projected to have one of the highest growth rates in the world for a cannabis market, with a 76.8% compound annual growth rate to reach $1.6 billion by 2022, according to research by Arcview.
XPhyto has acquired 100% ownership of a German cannabis company Bunker Pflanzenextrakte GmbH. The company operates from a decommissioned German Air Force command center and nuclear bunker near Munich, hence its name, which is the largest cannabis laboratory in Germany.
Contact the author Uttara Choudhury at email@example.com
Follow her on Twitter: @UttaraProactive