Company Announces Corporate Update and Market Expansion
COSTA MESA, CA–(GlobeNewswire – April 18, 2018) – Sipp Industries, Inc. (OTC: SIPC), a multifaceted corporation specializing in technology, manufacturing, and distribution of commercial and consumer products, is pleased to announce that its wholly-owned subsidiary, Major Hemp, has continued its expansion of Major Hemp Brown Ale (MHBA) throughout the Colorado market.
Major Hemp Brown Ale was formulated through a collaboration effort with Sleeping Giant Brewing Company, a major contract brewery in Colorado. The recipe for MHBA uses a proprietary water-soluble hemp powder, containing Omega-3 and Omega-6 fatty acids, which imparts a walnut flavor and earthy characteristics to the American Brown Ale.
Though the cultivation of the hemp plant has been federally illegal since 1937, MHBA is legal in all 50 states because it is produced using hemp seeds, which are exempt from being scheduled because they do not contain any detectable measure of cannabinoids such as tetrahydrocannabinol (THC).
Since MHBA’s launch in Q1 of 2017, its sales have taken place in over 50 establishments in the Denver area, with eleven new locations added in the last few weeks. Feedback concerning the beer’s flavor, aroma and appearance had been solicited from both establishments and customers in order to meticulously optimize the formulation before embarking on broader distribution.
With the concept proven, the Company has been embarking on a path to produce in greater quantity and package MHBA in cans for nationwide distribution. Despite its intention, Sipp has encountered a few regulatory issues when trying to expand its market outside of Colorado which is causing some delay. Management has been actively working through the issues and expects to have them resolved soon.
A significant event in both the cannabis and beer industry occurred in late October 2017 when Constellation Brands, maker of Corona Beer, invested $200M in Canadian publicly traded Canopy Growth, the largest cannabis company in the world. The ripple effect in America during the first few months of 2018 has generated an increased interest from both craft beer makers and consumers of cannabis.
On April 13, Senate Majority Leader Mitch McConnell introduced into the chamber a strongly backed bipartisan bill, The Hemp Farming Act of 2018. This marked the first time a bill legalizing hemp hits the floor of the Senate since it was made illegal in 1937, representing a truly historic moment in the history of hemp in America. The bill would legalize hemp as an agricultural commodity in all 50 states, while removing it completely from the Schedule of Controlled Substances. Authority governing its use would be transferred from the Drug Enforcement Agency to the United States Department of Agriculture. The bill is now being fast track through the Senate.
As a major development for the craft beer industry, New Belgium had recently introduced a beer called The Hemperor. After a period of over three years in development, this hemp-seed IPA finally received Alcohol and Tobacco Tax and Trade Bureau (TTB) approval to be sold nationwide. As the fourth largest craft brewery in the United States and the first brewery to release a truly national hemp beer, New Belgium and its historic Hemp IPA launch has generated widespread media attention.
As an effect from these major developments, Sipp has been seeing a strong increase in demand for its MHBA as well as a number of inquiries for partnership for hemp beer production and distribution. The Company is exploring a few collaboration efforts and will update all shareholders in the near future.
“The game has changed pretty suddenly. We have been receiving numerous inquiries from a variety of breweries located in different parts of the country and are presently evaluating a series of offers. Our goal has always been to build a national brand so it is important that we form partnerships with breweries and distributors that can get Major Hemp Brown Ale to consumers throughout the US. We are in late discussion phases with partners in three states that will help expand our market significantly,” commented Ted Jorgensen, President of wholly owned subsidiary Major Hemp.
Sipp Industries Chief Executive Officer, Syman Vong, concluded, “We are elated by the very fortuitous sequence of events in hemp legislation that have transpired over the past few weeks. The market is now wide open and we are ready take the company to the next level. We are extremely excited with the recent industry development and the current initiatives we have in the pipeline. We expect 2018 to be a banner year for Sipp Industries which will set the stage for our long term growth.”
About Sipp Industries, Inc.
Sipp Industries is a multifaceted corporation that specializes in technology, manufacturing and distribution of commercial and consumer products. Through its wholly owned subsidiary, Major Hemp, the Company provides high quality and competitively priced hemp based products, bulk hemp, CBD supply, co-packing and private labeling services.
Website: https://sippindustries.com
Facebook: https://www.facebook.com/SippIndustries
Twitter: @SippIndustries
Forward Looking Statements:
This release contains forward-looking statements within the meaning of Section 27a of the Securities Act of 1933, as amended and section 21e of the Securities and Exchange Act of 1934, as amended. Those statements include the intent, belief or current expectations of the company and its management team.
Forward-looking statements are projections of events, revenues, income, future economics, research, development, reformulation, product performance or management’s plans and objectives for future operations. Some or all of the events or results anticipated by these forward-looking statements may not occur. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Accomplishing the strategy described herein is significantly dependent upon numerous factors, many that are not in management’s control.
Contact:
Ted Jorgensen
Major Hemp President
Sipp Industries, Inc.
Investor Relations
ir@sippindustries.com
949.220.0435
