India Globalization Capital (IGC) has executed a ten-year distribution agreement for energy drink products, including sugar-free beverage Nitro G.

With the latest agreement in place, IGC is also entering the hemp and cannabidiol (CBD) infused energy drinks category.

Under the distribution agreement, IGC has agreed to pay 797,000 shares of restricted and unregistered common stock with an option for multiple five-year extensions for the rights to market the products in the US, Canada, Mexico and South America.

In addition, the agreement includes exclusive global rights to all developed CBD-infused products.

IGC’s CEO Ram Mukunda said: “According to a Grand View Research forecast, the global energy drinks market is projected to be almost $85bn by the year 2025, with non-alcoholic beverage sales expected to account for a significant portion of the market.

“The global energy drinks market is projected to be almost $85bn by the year 2025.”

“This represents a unique opportunity for the development and commercialisation of a CBD-infused, sugar-free energy beverage.

“By combining the experience of IGC with Hyalolex with the manufacturer in Malaysia, we potentially bring together unique expertise in microencapsulation, solubility, infusion, controlled dose delivery and sugar-free processes.”

IGC is planning to create a new version of the hemp / CBD-infused brand that addresses market demand for energy drinks with the inclusion of healthy properties derived from hemp, including CBD.

The timing of the transaction coincides with the 2018 Farm Bill that addresses potentially legalising industrial hemp and products derived from it, including hemp oil that contains CBD at a federal level.

Mukunda further added: “This will help introduce an exciting CBD-infused energy drink to the market and the acquired knowledge base can be further leveraged to diversify the delivery method for IGC branded products including Hyalolextm, our flagship product for patients suffering from Alzheimer’s.”