Tinley Beverage Co (CSE: TNY) announced a number of distribution developments this morning, with the major highlights being the entrance of Beckett’s into a national retailer with over two thousand stores across the United States, as well as one of the largest warehouse-format retailers across the nation. Additionally, Tinley’s cannabis infused products will now be available for home delivery throughout California, while also being featured at several Palm Springs hotels.
The announcement of Tinley’s expanded distribution of its non-infused beverages comes shortly on the heals of the product being announced. The Beckett’s line of alcohol-inspired beverages was announced at the end of October, after the firm signed a distribution deal with that of BevMo! and its 150 retail locations across three US states. The firm has seen strong demand in a short period of time for the Beckett’s product line, as evidenced by the expanded distribution.
Outlined in this mornings news release is that store trials will be beginning for a grocery chain that currently has over 2,000 stores across the US. The trials will be conducted in undisclosed neighbourhoods across Los Angeles and Orange County. Upon initial success of the trial period, it is believed that distribution will be expanded with the retailer to more locations.
The Beckett’s line of product will also be featured at one of the USA’s largest national club/warehouse-style retailers. The product is expected to be featured in a dedicated high-visibility location at an initial Southern California location, and will feature sampling in a high-traffic area near checkout. The location is being used as an initial step towards a wider store roll-out.
In terms of Tinley’s cannabis infused products, significant inroads were also announced on the distribution front. Starting this week, Tinley’s beverages will be available for home delivery across California through the Driven Deliveries platform. The platform covers 92% of the California population for next day delivery – and 60% of California is able to receive same day delivery service. Home delivery presents a new opportunity for product access for those consumers that are infrequent dispensary shoppers, or those of whom who are not near a suitable retailer.
If home delivery is not enough for consumers, two other avenues of access were announced as well for cannabis-infused Tinley beverages. First, the product will be available at OG Cannabis Cafe located in West Hollywood. The cafe is the first full service on-site consumption lounge in the US, and presents an ideal opportunity for cannabis beverage consumption. Second, several hotels in the Palm Springs area will now be featuring Tinley’s products. Delivery menus are being placed in guestrooms and public areas for tourists to easily access the product, and free delivery will occur in 20 minutes or less thanks to a partnership with a local retailer.
Finally, Tinley continues to build its core dispensary channel, with products now being available in over 50 dispensaries across California. Strong initial orders are occurring as well, with a two store chain of dispensaries recently placing an initial order for over $50,000. Combined with strong demand out of the gate for the alcohol-inspired Beckett’s line of product, revenue build is anticipated to continue as recurring orders begin to occur.
Tinley continues to recognize revenues when paid versus when delivered, resulting in a typical 1-2 quarter delay in revenues following product orders. The timeframe for payment is expected to shorten as reorders come in and payment terms are shortened. The non-infused product line is also expected to have a smaller lag time for payment as a result of reducing middlemen in the sales process via direct to retailer delivery.
Tinley Beverage Co last traded at $0.36 on the CSE.
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.
