Tinley Beverage Co (CSE: TNY) is currently up 18% on volume of 196,048 making it one of today’s market movers. The equity has peaked as high as $0.33 in intraday trading before falling slightly to the current price of $0.295.
The bullish movement in the equity follows yesterdays announcement that the company has passed its previously delayed municipal electrical inspection now that the specialized infrastructure has been installed at the firms flagship Long Beach, California facility. That news resulted in Tinley closing yesterday’s session at the high of the day at $0.25, an increase of 16.3% or $0.035 on the day.
With the electrical inspection completed at the facility, the company announced that it is expecting to finish off the required municipal inspections at the facility later this week. The State of California has previously indicated to the company that the municipal inspections are the only thing standing between the company and its cannabis manufacturing license, resulting in the expectation that the facility will be licensed for manufacturing in short order.
With Tinley’s flagship facility set to be commissioned and operational in the near term, the company has nearly completed the decommissioning of the phase two facility that it currently operates out of. With ample product inventory to see the company through to the start up of Long Beach, the equipment used in Phase 2 is expected to be shipped to a second state – likely Nevada – for the purpose of establishing multi-state bottling operations for its cannabis infused beverages sold under the Tinley Tonics and Tinley ’27 collections.
The flagship facility itself is located in an ideal location. Located in Long Beach, California, the jurisdiction sees some of the lowest tax rates in the state, at just 1% for manufacturing and distribution. Further, the 20,000 square foot facility includes both manufacturing and distribution, resulting in $0 in costs to get product between the two centers.
The current annual capacity of 12 million bottles via its purpose built cannabis infused beverage bottling line provides ample capacity, with the facility having space to add additional lines for canning and mini bottles. It’s proximity to major centers, including LA, also result in low distribution costs at the end of the line. Combined, the facility is ripe for co-packing agreements as bigger brands look to enter the cannabis beverage space.
And this is just the firms cannabis operations. As of late, Tinley also has a new line of products, designed for the sober curious movement. What’s that? The sober curious movement is the recent push by consumers to reduce the consumption of intoxicants, such as alcohol, in a bid to lead a healthier, wellness-focused lifestyle. However, this doesn’t mean that consumers don’t want to drink great tasting beverages as a result.
The Beckett’s line of product looks to fill this niche, with alcohol-inspired beverages with a fraction of the calories and none of the intoxicants. And if consumers are looking to still obtain a buzz while drinking it, the similar branding will lead them to the Tinley line of products which taste the same while being infused with cannabis.
The Beckett’s line of product is off to a record start, with product currently available at over 150 BevMo! locations across three states – Washington, California, and Arizona. Outside of this significant arrangement with BevMo!, the company is currently about to begin product trials with two major retailers.
One, a national grocery chain, and the other, a national warehouse-format retailer, are set to begin these product trials as soon as possible. If they go well, Tinley and its Beckett’s line of product might be looking at the potential of a national rollout to locations across the US.
FULL DISCLOSURE: Tinley Beverage is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Tinley Beverage on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
