Cannabis-infused beverage maker BevCanna has signed a non-binding letter of intent (LoI) with British Columbian (BC) beverage brand State B Beverage Co (State B).

Under the agreement, BevCanna will manufacture and distribute white-label CBD and THC-infused beverages for State B.

BevCanna chief strategic officer John Campbell said: “The State B brand is an intriguing new concept, and we’re excited to be the ones to launch the new line.

“Our plan to create a sustainable consistent revenue stream through our white-label portfolio is well on track, and adding the State B brand will add to the momentum.”

Part of Brujera Elixirs (Brujera) house of brands, State B was launched by British Columbian mixologist and Master Drink Maker Kelly Ann Woods.

Currently, Brujera brand portfolio includes Boozewitch and three additional functional human performance that are presently in the development stage.

As part of the proposed agreement, BevCanna will focus on creating a new State B beverage concept that will merge of functional beverages and cannabis drinks.

Additionally, BevCanna will also be responsible for maintaining regulatory compliance with Health Canada.

Furthermore, State B will oversee national sales and marketing efforts for launching its beverage lineup in the Canadian market.

Initially, BevCanna will produce a white label for three years and will have the option to renew the agreement for an additional three years.

Brujera CEO Kelly Ann Woods said: “BevCanna’s experience in formulating functional yet very appealing beverages was exactly what we were looking for in a white-label partner.

“Their success in bringing great concepts to life, while maintaining strict regulatory compliance, convinced us that they were the right partner to work with on our new brand.”