Multiyear Agreement with The Boston Beer Company
| Stock | Althea Group Holdings Ltd (AGH.ASX) |
|---|---|
| Release Time | 10 Jan 2025, 2:10 p.m. |
| Price Sensitive | Yes |
Althea Group Secures Multiyear Deal with Boston Beer
- Peak Processing Solutions enters strengthened multiyear manufacturing agreement with BBCCC, Inc., a subsidiary of The Boston Beer Company
- Agreement reinforces Peak's position as BBC's exclusive Canadian manufacturing partner for cannabis beverages through 2026
- Enhanced commercial terms improve Peak's cash flow and ensure consistent supply for BBC's cannabis brands
Althea Group Holdings Limited (ASX:AGH), a global leader in the manufacturing, sales and distribution of cannabis-based medicines and recreational cannabis products, has announced that its wholly-owned subsidiary, Peak Processing Solutions ('Peak'), has enhanced its Contract Manufacturing Agreement ('the Agreement') with BBCCC, Inc., a subsidiary of The Boston Beer Company, for the production of their cannabis beverage portfolio in Canada. The updated terms of the Agreement bolster Peak's financial stability through improved cash flow arrangements, underscoring the Company's focus on long-term partnerships with mainstream, sustainable commercial players. Under the Agreement, Peak has agreed to reserve BBC capacity in its state-of-the-art facility, beginning with a minimum in excess of 800,000 units for the calendar year 2025. This milestone highlights Peak's growing leadership in the cannabis-infused beverage market. Additionally, under the Agreement Peak will ensure BBC has access to minimum production line time, ensuring they can meet rising consumer demand for their flagship cannabis beverage brands, TeaPot and Emerald Hour Cannabis Cocktails. The Agreement has an initial term of 1 January 2025 - 31 August 2026 with successive automatic renewal terms of 3 years each unless either party gives written notice 180 days before the end of the then-current term.
Under the new agreement, Peak has committed capacity to BBC of a minimum in excess of 800,000 units for calendar year 2025.
The Agreement reinforces Peak's position as BBC's exclusive Canadian manufacturing partner for cannabis beverages through 2026, ensuring consistent supply for BBC's cannabis brands.