Peak Processing to Boost Production by 700,000 Units with St. Peter’s Expansion
Peak Processing has significantly expanded its manufacturing partnership with St. Peter’s Beverages, tripling its SKU production and boosting annual output by up to 700,000 units. This move strengthens its foothold in North America’s cannabis beverage market using proprietary technology.
- Manufacturing agreement expanded from 4 to 14 SKUs
- Annual production expected to increase by 500,000 to 700,000 units
- All products to use Peak’s patent-pending Envision Emulsions platform
- Partnership enhances exposure to Canadian and US cannabis markets
- Multiyear contract secured through January 2028 with potential extension
Peak Processing Scales Up Manufacturing
Peak Processing Limited (ASX – PKP) has announced a substantial expansion of its manufacturing partnership with St. Peter’s Beverages, a key player in the cannabis beverage sector. The agreement now covers the full range of Green Monké and Cookies brands, increasing Peak’s manufacturing scope from 4 to 14 SKUs. This represents a 250% increase in production volume and is expected to add between 500,000 and 700,000 units annually to Peak’s output.
Leveraging Proprietary Technology
All new SKUs will be produced using Peak’s patent-pending Envision Emulsions platform, a proprietary technology designed to enhance the quality and consistency of THC-infused beverages. This technological edge not only reinforces Peak’s position as a leader in regulated cannabis beverage manufacturing but also opens doors for deeper collaborations with established brands.
Strategic Market Exposure
The expanded deal strengthens Peak’s presence in the Canadian market while providing indirect exposure to the US through St. Peter’s established distribution networks. Notably, Green Monké recently secured a multi-state agreement with Circle K, covering approximately 1,300 stores across five US states. Cookies, a globally recognised cannabis brand, further enhances Peak’s access to the lucrative US market.
Commercial and Operational Impact
The multiyear agreement, effective from January 1, 2026, runs through to January 2028 with options for extension. It includes tiered pricing and volume incentives, supporting Peak’s strategy to scale operations efficiently. The deal also opens additional revenue streams through logistics, storage, and testing services, complementing manufacturing income.
Looking Ahead
CEO Barry Katzman emphasised the deal’s alignment with Peak’s manufacturing-only focus and growth ambitions in North America. With enhanced production capacity and proprietary technology, Peak is well-positioned to capitalise on the expanding cannabis beverage market. Investors will be watching closely for upcoming commercial milestones that could further validate this growth trajectory.
Bottom Line?
Peak’s expanded manufacturing deal marks a pivotal step in scaling its North American cannabis beverage footprint.
Questions in the middle?
- How will the expanded SKU range impact Peak’s revenue mix and margins?
- What are the prospects for direct US market manufacturing or partnerships?
- How will the Envision Emulsions platform differentiate Peak from competitors long term?
