JOHANNESBURG (Reuters) – A South African wine, beer and spirits company will soon be able to offer cannabidiol-irrigated drinks after a 20% stake in RETHINK’s cannabis health industry, he said. Wednesday.
Distell’s investment allows it access to the RETHINK brand and product range, which includes oils, capsules and teas made with cannabidiol (CBD), a chemical fertilizer found in the cannabis plant which is becoming increasingly popular for practices ranging from relaxation to skin care.
CBD is one of several compounds found in the cannabis plant but studies have found that it does not cause a ‘high’ effect or a product that could lead to addiction, according to the Scottish Health Organization. Universe.
Distell said the investment would help it to benefit from increased demand for cannabis products such as CBD.
“The cannabis sector is still in its infancy and is beginning to grow as legislation becomes in place to control and legalize some of the practices,” Distell CEO Richard Rushton said in a statement, adding that the investment was in line with its strategy to explore new expansions. opportunities.
The price for the portion in RETHINK, created by the herbal and organic pharmaceutical company Releaf Pharmaceuticals, has not been released. Invenfin, the venture capital arm of Distell’s largest shareholder, Remgro, acquired a 20% stake in RETHINK.
Distell and Invenfin said their partnership with Releaf Pharmaceuticals could achieve a range of CBD brands and market leadership both in South Africa and other key markets. Distell said this included but was not limited to drinks with CBD.
Distell is currently embarking on the effects of an alcohol ban in South Africa, the third to be implemented since March last year as part of coronavirus restrictions. But large investments made in previous years have helped to overcome it, he said last year.
It has been legal to sell CBD products in South Africa since 2019.
Reciting with Emma Rumney; Edited by Promit Mukherjee and Jane Merriman