THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS.
SANTA MONICA, Calif. and TORONTO, Aug. 29, 2019 (GLOBE NEWSWIRE) -- The Tinley Beverage Company Inc. (the “Company" or "Tinley") is pleased to announce that it has completed the buildout of its Phase 3 permanent facility in Long Beach, California.
The state-of-the-art facility is purpose-built for formulation, batching and co-packing of a variety of cannabis-infused beverages, as well as for the provision of branding, regulatory and beverage-specific DSD distribution-related services. The facility will also be used to produce the Company’s own Tinley-branded products, which began shipping to distributors from a phase 2 manufacturing facility in late Q2 2019.
As recently disclosed, the Company has already begun providing formulation services for prospective co-packing clients, and continues to receive substantial inbound interest from companies, mainly in the beverage alcohol, health beverage and cannabis industries. It expects to initiate production of these products at the Company’s temporary manufacturer in California’s Coachella Valley in Q4 2019, and shift production of these products, as well as of its Tinley-branded products, to its Long Beach facility upon completion of licensing.
The 20,000 square foot facility is located approximately 14 miles south of downtown Los Angeles, thereby positioning it within close proximity to North America’s largest beverage market, as well as the continent’s largest cannabis market. Physical proximity to key markets is critical for the cannabis beverage category, given the additional size and weight of beverages relative to traditional cannabis products, coupled with the need for frequent DSD-related merchandising visits.
As part of the bottling line commission process, the Company has successfully produced non-infused versions of its single-serve “Tinley™ Tonics” and multi-serve “Tinley™ ‘27” liquor-inspired cannabis beverages. Upon receipt of final licensing, the Company will be in a position to produce infused versions at this facility. Completion of licensing is contingent upon electrical and other confirmatory inspections, based on the local authorization which has already been successfully granted by the City of Long Beach. The Company remains pleased with the pace of interactions with the relevant licensing authorities, and it will continue to update investors and other constituents as this process unfolds. Based on commissioning work recently completed, the Company’s engineers have confirmed that this facility will have bottling capacity of approximately 12 million bottles per year, with a space plan for two additional bottling lines to accommodate additional beverage formats, such as miniature bottles and cans, as well as for increased capacity of existing package formats as required. Development of the distribution portion of the facility is also complete, and the Company has already begun capturing portions of the economics of this downstream revenue by providing beverage-specific merchandising and other DSD-specific services to existing cannabis distributors.
The Company is also utilizing the standard operating procedures, blueprints and other IP gained during this buildout to help its prospective Canadian partners with their own bottling plant buildouts. The Company continues to progress through discussions with its two prospective Canadian partners and hopes to conclude these discussions within the next 30-45 days.
“This achievement marks the culmination of several years of design, engineering and construction work, enabled by learnings from the real-world sales and market experience that we have gained as a Company through our Phase 1 and Phase 2 facilities,” said Ted Zittell, director of the Company. “With a first-class production and sales team in place, Tinley is well-positioned to help third-party CPG and lifestyle brand owners extend their offer into the growing cannabis beverage market, in the same manner as our team has done for over 100 such brands globally in the cola and wider beverage industry,” he continued.
About The Tinley Beverage Company
The Tinley Beverage Company (Santa Monica, California) created the Tinley™ Tonics and Tinley™ ‘27 line of cannabis beverages. The Tinley™ Tonics and Tinley™ ’27 line of liquor-inspired, non-alcoholic, cannabis-infused beverages are available in dispensaries throughout the State. The Company is also building a 20,000 square foot cannabis beverage manufacturing and distribution facility in Long Beach, California.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release contains or refers to forward-looking information and is based on current expectations that involve a number of business risks and uncertainties. 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. All figures CAD unless otherwise indicated.
For further information on The Tinley Beverage Company, please contact:
The Tinley Beverage Company Inc.
3435 Ocean Park Blvd. #107
Santa Monica, CA 90405
Photos accompanying this announcement are available at: