As part of ongoing efforts for lateral expansion into CBD-infused beverages, Fly Brands has entered into a partnership agreement with specialty ingredient provider Northern Diversified Solutions (NDS) with the goal of expanding Fly’s product breadth, opening new geographic territories and distribution channels that are more accessible to products that don’t contain tetrahydrocannabinol (THC).

“The multi-billion-dollar CBD beverage market represents a significant incremental opportunity for Fly to drive shareholder value while connecting with adjacent consumers who wouldn’t frequent cannabis dispensaries,” said Fly Brands CEO Theo Terris. “We are thrilled to partner with a trusted and competent supplier like Northern Diversified Solutions in order to execute against this opportunity.”

Fly is best known for its Uncle Arnie’s brand of iced tea lemonade containing 100 milligrams of THC. Fly’s other brands are Matt’s High Soda, which contains 50 milligrams of THC; Gadis cannabis-infused beverage, with 25 milligrams of THC; and the 10 milligram THC, zero sugar sparkling water NECTR.

“The Fly Brands portfolio is unparalleled in the THC beverage space as illustrated by the success of Uncle Arnie’s, California’s No.1 selling 100 milligram beverage SKU,” said NDS CEO Kyle Marinkovich. “We are excited to help them expand into the CBD space.”

Fly Brands chose NDS for its proven ability to innovate products, to manage supply chain risk and for its track record of consistently delivering product on-time and in-spec, Fly Brands said in a press statement.

The synergistic partnership combines Fly’s expertise in developing consumer-centric brands with NDS’s extensive knowledge of cannabinoid ingredient solutions and supply chain management.

Uncle Arnie’s iced tea lemonade is currently available in 220 California licensed dispensaries and accounts for 31% of total sales for the ice tea, lemonade and fruit segment category. Later this year, Fly Brands will expand the Uncle Arnie’s line from one SKU to 10 SKUs.