The cannabis industry continues to attract big players even from other sectors, and the luxury market is certainly one of them.
Tonino Lamborghini, a luxury goods brand, has just signed a license agreement with Flora Growth Corp. The two plan a joint venture for CBD-infused drinks to be sold in Colombia and North America by next year, starting with a line of CBD coffees.
“The cannabis market represents a very interesting niche and we intend to offer a different luxury experience,” explains Ferruccio Lamborghini, CEO for Tonino Lamborghini.
Ferrucio, whose grandfather founded the world-famous sports car brand, emailed NASDAQ regarding the deal saying that the company has been in the coffee industry for more than 30 years now, with a line of high-end espressos. Though Tonino Lamborghini isn’t exactly linked to the car industry, which is now owned by Volkswagen, it’s operated by members of the clan.
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It’s all about luxury
Meanwhile, Flora Growth released a statement saying that their new CBD drinks together with Lamborghini. It’s a good move for the family, as the CBD coffee will be a premium beverage that reflects the brand’s stronghold in the luxury industry, so it will help them get a good foot in the beverage market.
“They always wanted to get into the cannabis space but wanted to make sure they do it with the company that has know-how and the traceability that could ensure the quality of the Lamborghini products that have come to be renowned,” explains Floral’s CEO, Luis Merchan.
“I really don’t want you to get that image out of your head,” he says. “What I want to see is a canned beverage in the driver’s right hand while his left hand is on the wheel. That’s part of our strategy.. we don’t want to separate the luxury brand from the product we’re developing.”
After all, no one knows luxury like Tonino Lamborghini does. The Italian luxury goods firm, which was started three generations ago, now envisions that the driver can wear an entire outfit made by Lamborghini: from luxury watches to a briefcase and lighter, the luxury firm now has everything that their customer might want including a Lamborghini coffee to finish the look.
“From a Flora perspective, we’re making coffees with exceptional ingredients, making people feel great,” Merchan disclosed during an interview. “The second point is, it’s frankly not our brand; it’s Lamborghini’s and Lamborghini is a world-renowned brand.”
The Lamborghini’s iconic logo will be on the three coffee varieties.
One will be infused with vanilla, one without, and another with CBG which has been found to be helpful in increasing focus and relaxation. The brews were designed to give the same effect as caffeine even if it has CBD though it prevents the caffeine crash, Merchan explains. “It’s only anecdotal at this point in terms of what CBD does to you, but consumers are telling us it helps with focus and relaxation; they don’t experience a crash.”
Flora was founded in 2019 and is now one of the world’s biggest players in the cannabis industry. Their headquarters are in Toronto though they will soon be relocating to Miami, and they have smaller teams located around Europe and the United States. However, most of their 200 employees are stationed in Bogota, Colombia as well as in extraction and research sites in various rural locations. They emphasize on outdoor and organic cultivation, and boast of a state-of-the-art DNA molecular tracking system for quality and consistency.
In addition, Flora is also in the process of getting the good manufacturing practices (GMP) certification from the European Union in order to sell there.
Merchan says that both companies acknowledge that cannabis has a space in the global marketplace, adding that “the willingness of legacy luxury brands to take notice that this is going to be a significant change in the way consumers perceive cannabis,” states Leafreport.
“They’re incredibly sophisticated luxury-house owners,” Merchan says of Lamborghini.
The coffees will be first manufactured in Florida, then be sold around the United States in areas that cannabis products are already legal. The launch is expected for the first quarter of 2022.
The infused coffee industry
The infused beverages market only continues to grow, with a rising interest in consumers who are looking to pair their favorite drinks with THC and CBD.
However, the trend of pairing CBD with coffee is particularly interesting; after all, a majority of the population already consume coffee in one way or another. The HempIndustryDaily reports that 14% of regular coffee drinkers are keen to explore a CBD infusion, based on reports from Neilsen Global Connect.
“Relative to other categories, there are still lots of coffee drinkers who are interested in a CBD-infused coffee with no first-hand experience,” explains Rick Maturo of Nielsen to Hemp Industry Daily. “This means that for brands breaking into the CBD coffee space, there’s lots of room to garner potential loyalty to a given brand.”
According to research, the components of CBD and coffee can work well synergistically. Coffee is the most famous stimulant known to man; it’s relied upon by millions of people to increase alertness and improve performance for daily tasks. It stimulates the central nervous system, while CBD sedates it, and taking both together can be a great complement especially when it comes to removing the jitters and anxiety that many people get from taking coffee.
Lamborghini will surely be leading the way in luxury CBD coffees, a space that’s certainly fascinating to watch as it develops.