Arizona Tea maker enters the cannabis market

Marijuana products will soon hit the masses, as the maker of Arizona Tea enters the cannabis market, starting with vape pens and THC-infused gummies.

Privately held Arizona Beverage announced Tuesday that it reached a licensing deal with Dixie Brands, which makes and sells drinks, chocolates, gummies and topical creams that are laced with marijuana. Through the partnership, Dixie, which operates in six U.S. states, will manufacture and distribute products branded with Arizona’s name. The products will be sold through licensed dispensaries.

The deal also gives Arizona the right to buy a stake of up to $10 million in the cannabis company.

Arizona Beverage’s namesake iced teas are a staple at convenience stores and supermarkets around the country, including 7/11s, Walmarts, and Walgreens, which might indicate marijuana products are edging closer to the mainstream. The agreement is one of the first examples of a major consumer company entering the cannabis market.

“The cannabis market is an important emerging category, and we’ve maintained our independence as a private business to be positioned to lead and seize generation-defining opportunities exactly like this one,” said Don Vultaggio, chairman of Arizona Beverages in a press release. [Read more at CNBC]