TORONTO, May 8, 2019 – The Green Organic Dutchman Holdings Ltd. (the “Company” or “TGOD”) (TSX:TGOD) (US:TGODF) is pleased to announce the Company’s strategic investment into the US beverage space as a co-founding investor and strategic partner in the newly formed Califormulations LLC (“Califormulations”). Califormulations will operate out of Columbus, Georgia serving global branded companies with concept-to-shelf beverage commercialization support including formulation development, technical services, in-house pilot scale production and contract manufacturing co-ordination. TGOD will work with Califormulations to expedite the US launch of TGOD branded organic hemp-based CBD beverages, as local laws and regulations permit.
“We are incredibly excited to partner with Califormulations to further our development of hemp-based CBD beverage products,” said Brian Athaide, CEO of TGOD. “With the US market for functional beverages, including wellness, energy and sport recovery, currently worth over USD $20 billion, we want to remain on the cutting edge of innovation and establish the foundation for future proprietary and novel TGOD-branded products. TGOD strives to partner with established industry leaders, and we believe that this forward-looking strategic partnership positions TGOD to capitalize on the future cannabinoid beverage market.”
Califormulations is well positioned to immediately execute on a strategy to become the preeminent beverage formulation and commercialization centre in the United States. TGOD’s co-founding investment in Califormulations is occurring alongside the expertise of Symrise Inc. (“Symrise”), including its Beverage Innovation Centers in Laguna Beach and Teterboro. Symrise, TGOD and founding management have provided a combination of equity and debt financing to capitalize Califormulations.
TGOD’s investment in Califormulations illustrates TGOD’s progressive corporate philosophy of investing in brand differentiating capabilities. As global laws and regulations permit, Califormulations will be an important enabler allowing TGOD to manage supply chains without excessive investment in bricks and mortar. This approach is consistent with TGOD’s long-term objective to focus capital investments on building the world’s leading organic cannabis brand. The Company intends to leverage the experience within Califormulations to expedite the US launch of TGOD-branded organic hemp-based CBD beverages, as laws and regulations permit. Initially, however, the focus will be on having bulk non-infused beverage concentrates produced and shipped by Califormulations to TGOD-owned and contracted manufacturing sites around the globe, including Canada, for infusion with cannabinoids and distribution within legal markets.
Califormulations is a key component to TGOD’s existing global organic cannabinoid-infused beverage strategy. TGOD’s beverage team will have access to and use of Califormulations’ R&D facilities to collaborate on hemp-derived CBD beverage developments, while maintaining and enhancing TGOD’s intellectual property portfolio. TGOD will enjoy certain exclusivities pertaining to the development of organic cannabinoid-infused beverages through the Califormulations platform.
“Collectively, the complementary capabilities of this ecosystem give Califormulations a unique position in the beverage/consumer packaged goods market that will foster innovation and scale new, successful brands quickly,” commented Paul Graham, President of Symrise Flavors North America.
On Behalf of the Board of Directors,
The Green Organic Dutchman Holdings Ltd.