The second quarter has started on a roll for NBEV stock thanks to the signing of a cannabis distribution deal with retail giant Walmart (NYSE:WMT). The deal could not have come at a better time, given that New Age Beverages Corp (NASDAQ:NBEV) has also inked a deal to leverage Bob Marley’s name on its new line of cannabis products.
NBEV stock is trading higher by 1.90%, selling at $5.95 USD, in the morning session, extending its week-long gain to 25%.
Walmart Distribution Deal
The Walmart deal has got investors excited if a 20%+ spike in NBEV stock price is anything to go by. An agreement with Walmart is of great importance as it aligns well with the firm’s expansion plan, paving the way for it to target a broader market in the pursuit of sales.
The Marley Mate product line remains a big win for NBEV stock ahead of the distribution partnership with Walmart. The product line provides an easy and healthy way to get an energy boost without being intoxicated. Low sugar calories and carbohydrate content are some of the reasons why the product line stands out.
New Age Beverage has an opportunity to reach a national market and generate significant sales thanks to a strategic partnership with Walmart. While leveraging the iconic Marley name the company is likely to see a large increase in sales, which should point to more profits in 2019.
“This is such a great accomplishment for New Age to gain its first national distribution, and to do so with the world’s largest retailer in Walmart,” explains CEO Craig Thibodeau.
Hudson News Deal
New Age Beverages has since signed yet another distribution agreement with Hudson News as it seeks to expand its beverage portfolio across the Northeast. The agreements provide the company with access to 15,000+ retail accounts serviced across 11 states.
The announcement that the cannabis-focused company is working on the development of a line of marijuana-infused beverages is another positive on NBEV stock. The drive underscores the company’s plan to become a world-leading health beverage and lifestyle company.
NBEV stock’s solid performance in view of recent developments does not come as a surprise. A deal with Walmart as well as Hudson News is big news that justifies a recent spike in share price.
Featured image: DepositPhotos © Y-Boychenko