Organigram Snags Collective Project, Unlocking U.S. Hemp‑Derived THC Beverage Market
Organigram Global Inc. has acquired 100% of Collective Project Limited for roughly C$6.2 million, instantly adding a hemp‑derived THC beverage platform that could exceed a $4 billion market value by 2028.
“The acquisition of Collective Project marks yet another strategic milestone towards Organigram’s global leadership ambitions. It represents our first commercial entry into the fast‑growing hemp‑derived THC beverage market in the U.S. and fast‑tracks our entry into the cannabis beverage category in Canada, a segment we believe is on the cusp of rapid growth,” said Beena Goldenberg, CEO of Organigram.
Strategic Rationale
Organigram instantly gains a U.S. footprint as hemp‑derived THC beverages surge, with retailers such as Total Wines and Top Ten Liquors already stocking the products.
In Canada, cannabis beverages show above‑average growth potential, especially if distribution rules ease, making the segment the most promising adult‑use category for future on‑premise sales.
Collective Project’s brand equity, built on the Collective Arts craft‑beer heritage, gives Organigram instant consumer awareness and a ready‑made artist community across the United States.
The acquisition also lets Organigram fast‑track its own line of hemp‑derived THC drinks, leveraging existing sales networks and distribution channels in both countries.
Product Portfolio
Collective Project offers premium, fruit‑forward sparkling juices, teas and sodas made with real juice and no artificial sweeteners, while its packaging showcases rotating artist‑designed labels that support the creative community.
In Canada the lineup includes Blood Orange Vanilla Yuzu, Raspberry Vanilla, Mango Coconut Pineapple, Cherry Vanilla, White Peach Cardamom and Mango Peach Yuzu, with additional flavors slated for U.S. launch.
The lower‑priced “Fetch” soda line, featuring Classic Cola Zero, Cream Soda, Lemon‑Lime Zero and more, expands the range for price‑sensitive consumers.
Transaction Details
Organigram paid C$6.2 million cash for all CPL shares on a debt‑free basis, allocating C$6.0 million to the beverage business and C$0.2 million to its vaping and edible activities.
Performance‑based milestone payments total up to C$24 million, triggered by cumulative U.S. wholesale sales of $500,000 by June 30 2025 and $1 million by September 30 2025, followed by earnout calculations tied to 2.5× trailing revenue.
Payments are split 50% cash and 50% Organigram shares, priced at the five‑day TSX VWAP prior to settlement, and the entire contingent consideration is capped at C$24 million.
Future milestone or earn‑out drawdowns may be funded from Organigram’s Jupiter strategic investment pool.
