LOS ANGELES and TORONTO, May 31, 2021 (GLOBE NEWSWIRE) -- The Tinley Beverage Company Inc. (CSE:TNY, OTC:TNYBF) (“Tinley's” or the “Company”) is pleased to announce that its products will launch this week at the Harborside dispensaries, one of California’s oldest and most prominent dispensary chains. The Company also expects increasing daily utilization of its Long Beach manufacturing facility throughout the month of June. The Company’s non-infused products continue to expand retail placements in California, Tennessee, Alberta, and Ontario. The Company believes that this growth is driving the diversification of the Company’s revenue streams, enabled by the full commissioning of the Company’s facility in Q4 2020.
Harborside is a vertically integrated California-focused licensed cannabis business with retail locations in Oakland, San Jose, San Leandro, and Desert Hot Springs, a 47-acre farm and production facility in Monterey County, and over 365,000 registered customers. Harborside (CSE:HBOR), is one of the oldest and most respected cannabis retailers in the world. Tinley’s products are expected to launch in all four locations over the next 1-2 weeks.
Tinley’s™ infused products are now available in two of Northern California’s highest-volume retail groups, in addition to being direct-to-consumer enabled through one of the State’s largest retail home delivery networks. The Company is working with these groups on structured, system-wide marketing initiatives to drive trial and sell-through, both in-store and online.
The Company’s Beckett’s™ non-alcoholic spirits and cocktails now have approximately 65 facings in approximately 20 cantina, liquor and convenience stores in Tennessee. This expansion is being led by Lipman Brothers, Tennessee’s oldest wine and spirits distributor. The Company is working with Todd Chrisley on in-store merchandising and appearance programs to drive local brand awareness and sell through. Todd Chrisley is one of NBC Universal’s top-rated reality television stars nationally, and Nashville is his top-rated market.
Beckett’s™ is now available at Summerhill Market’s Annex and Forest Hill stores in Toronto. The Company has also restocked Alberta’s Liquor Connect Group and is continuing its expansion throughout the province and has scheduled production of additional inventory in June to meet growing demand. Additionally, the Company has received interest from on premise accounts which, pending successful arrangement of logistics, would make the products available on menus in many Canadian provinces.
Third Party Manufacturing
The Company expects increasing capacity utilization through the month of June at its cannabis beverage manufacturing facility in Long Beach, California for its previously disclosed third-party beverages. This reflects the rapid growth in demand for its third-party manufacturing services since entering into its first such agreement four months ago.
The Company also expects production to include three additional third-party brands. These include products to be produced on the Company’s new canning line, which is now in the process of final commissioning.
The three additional third-party brands include Fable, a line of four cannabis-infused botanical beverages created by advertising industry veteran Ben Kennedy and his wife and co-founder Kristin. Each 12-ounce bottle will deliver three non-alcoholic “cocktail” servings, each containing a micro dose of 4mg THC and 2mg CBD per serving. Flavours include:
“Making a great happy hour drink, minus the alcohol, was challenging,” said Fable CEO and co-founder Ben Kennedy. “The viscosity, the bite, the quality of ingredients and how they all work together are the foundation of Fable. Our four cocktails deliver a tasting experience that is just as special as the cannabis buzz.”
“It’s exciting to see our bottling equipment operating so frequently,” said Rick Gillis, President of Tinley Western USA. “After a lengthy buildout, we are delighted to be attracting such a high caliber of third-party brands, and their sell through is proving to be strong. Together with the placement of our infused products in large dispensary chains and our non-infused products in an increasing number of states and provinces, we’re beyond excited to at long last see the Tinley vision come to life.”
With increased capacity utilization and expanded distribution for the Company’s own branded products, the Company’s revenue is increasingly becoming diversified across its three business lines: Third-party cannabis beverage manufacturing, Tinley’s infused beverages and Beckett’s non-infused beverages. While only a small portion of third-party beverage manufacturing revenues have been recognized thus far, owing to such production runs only having begun shipping in March, such revenue is now driving a significantly larger portion of the Company’s revenue. In 2020, revenue was mostly generated by non-infused beverage sales, primarily due the Company’s lack of access to scaled infused beverage production for the majority of the year. The Company expects the bottling capacity utilization at its permanent, scaled facility in Long Beach to continue to increase, and this facility enables the Company to manufacture and sell its own Tinley-branded products in greater scale as well. The Company notes that uncertainty inherently exists in any new manufacturing operation surrounding the throughput achieved on any given bottling day as well as the repeatability of client demand. Therefore, the Company does not provide specific guidance on revenue and does not disclose the details of third-party brand agreements unless required to do so by applicable regulations. The Company expects its increasingly diversified revenue to continue to balance and accelerate growth in the coming quarters.
About The Tinley Beverage Company and Beckett’s Tonics
The Tinley Beverage Company Inc. (OTC:TNYBF, CSE:TNY) manufactures the Beckett’s Classics™ and Beckett’s 27™ line of non-alcoholic, terpene-infused spirits and cocktails. Beckett’s products are available in mainstream food, beverage and specialty retailers, as well as online across the United States. Cannabis-infused versions of these products are also offered in licensed dispensaries throughout California. Expansion to Canada is underway for both product lines. Tinley’s facility in Long Beach California contains the state’s most versatile and technologically advanced cannabis-licensed beverage manufacturing equipment. Please visit www.drinkbecketts.com, www.drinktinley.com, Instagram @drinktinleys and @drinkbecketts for recipes, product information and home delivery options.
This news release contains forward-looking statements and information (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities laws. Forward-looking statements are statements and information that are not historical facts but instead include financial projections and estimates, statements regarding plans, goals, objectives, intentions and expectations with respect to the future business, operations, expansion to additional jurisdictions, diversification of the Company’s revenue streams and future expectations regarding the balancing and acceleration of the Company’s growth in the coming quarters, the Company’s ability to drive trial and sell-through both in-store and online, the Company’s expectations regarding increased capacity utilization through the month of June and beyond, the Company’s expectations regarding the production of three additional third party brands and the Company’s ability to broaden the brands’ product line-ups produced at the Company’s facility, and phrases containing words such as “ongoing”, “estimates”, “expects”, or the negative thereof or any other variations thereon or comparable terminology referring to future events or results, or that events or conditions “will”, “may”, “could”, or “should” occur or be achieved, or comparable terminology referring to future events or results. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.
Products, formulations and timelines outlined herein are subject to change at any time.
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