Nevis Brands (CSE:NEVI, OTCQB:NEVIF) has set its sights on growing its position in hemp-derived cannabis beverages in 2025, after expanding into new states and achieving its first EBITDA-positive quarter this year.
The company achieved EBITDA profitability in the third quarter amid strong demand for its flagship Major-branded cannabis beverages in existing and new markets.
“That was a big milestone for our company,” Nevis CEO John Kueber told Proactive.
“Growing companies can’t always maintain that. We may not always maintain that as we may choose to spend on growth, but it was important for us to show investors that our business can and mostly will run on a positive EBITDA basis.”
During 2024, Nevis expanded its branded cannabis beverages into four new states: Missouri, New Jersey, Mississippi, and Oklahoma.
Kueber highlighted Missouri as a standout market. “That’s been one of our fastest-growing markets and is expected to continue to be a revenue driver in 2025,” he said.
“We’re unique in that we have low overhead so we’re able to maintain a lot of different markets and we’ve seen some competitors pull back and create some new opportunities for us.”
Nevis has also responded to challenges in some of its existing markets, Oregon and Arizona, by making changes to its licensees, resulting in less channel conflict.
“We’re the only beverage that these new partners are carrying, and we think we’re going to see some increased success and increased retail pickup of our brands,” Kueber said.
Prioritizing hemp-derived cannabis beverages
In 2025, the company plans to introduce its cannabis beverages into two more regulated markets but advancing its hemp-derived cannabis (Delta-9 or D9) products will take priority, the CEO said.
Under the 2018 Farm Bill, hemp-based products containing less than 0.3% Delta-9 THC are legal on a federal level in the United States, presenting an immense opportunity for Nevis. The company added hemp-derived products to its Major lineup with a licensee in August.
“Getting into that space was a really important move for us,” Kueber said. “It’s important for revenue growth and it’s also important for us to maintain our position as one of the dominant brands in the cannabis beverage space in D9.”
Kueber highlighted that sales of hemp-derived THC tripled in 2024 and are expected to double in 2025, “so hemp-derived THC is a great opportunity for us,” he said.
“To date, cannabis has only been legal by state regulations, but we can make products with that hemp-derived THC and sell them in 35-plus different states,” Kueber explained.
Launching new D9 products also provides Nevis with the opportunity to move beyond its low-overhead, licensing model.
“Investors can look for us to launch at least one and probably several of our brands in the D9 space on a non-licensed model,” Kueber said.
“What that means is we will take more control of the retail sales online and as well as wholesale sales to distributors, to alternative smoke shops, to other retailers who are willing to carry D9. We are excited to be able to have more influence on the sales of some of our brands and recognize some of the topline revenue.”
Kueber added that while Nevis is not in a rush to be bought or to be a buyer on any particular opportunity, “if you can work together with another company that brings some synergy, it’s something worth exploring.”
“We may not do any acquisitions during 2025, but it’s something that we certainly think about."
Minor cannabinoids in the spotlight
Looking to the New Year, as well as D9 being a key trend in the cannabis beverages space, Kueber expects to see more of a focus on “minor cannabinoids” such as CBN and CBG.
Minor cannabinoids like CBN and CBG are compounds found in cannabis plants in smaller amounts compared to the more well-known THC and CBD.
“In the regulated market, I think developing more drinks with minor cannabinoids is going to be important. We certainly have plans to participate in that trend,” Kueber said.
He noted the irony that states that have legalized cannabis often ban hemp-derived beverages, including in Nevis’ home state of Washington. “Navigating the evolving landscape of hemp-derived THC is going to be an important trend for people in the cannabis space over 2025."
In terms of potential regulatory changes impacting the US cannabis sector under the incoming Trump administration, Kueber is hopeful the industry will see positive changes.
“It can’t get any worse,” he said. “The last administration really did nothing for our industry. We expected some changes to re-scheduling and some guidance to towards potential legalization.”
He noted that President-elect Donald Trump has made some cannabis-friendly comments without stating outright he is in favor of the industry. “I don’t think cannabis is a legislative priority, but I do expect some change to start in the latter half of 2025,” Kueber said.
Nevis Brands (CSE:NEVI, OTCQB:PSCBF) is set for a pivotal year in 2025 as it prioritizes hemp-derived Delta-9 products, explores new market opportunities, and gains more control over its sales channels to solidify its role in the cannabis beverage market.