Peak Processing secures exclusive US manufacturing deal for iconic Fryday Kush THC beverages
Peak Processing Limited (ASX: PKP) has entered into a three-year exclusive manufacturing agreement through its wholly owned US subsidiary, Peak USA Inc., to manufacture THC beverages under the globally recognised Fryday Kush® brand. The agreement is held with longstanding partner BTAB Solutions Inc. and covers 13 designated US states.
This represents Peak’s first US brand-partner manufacturing agreement, marking the Company’s entry into what the Board considers its largest long-term growth opportunity.
The agreement is binding on both parties, effective immediately, and not subject to any material conditions precedent. Manufacturing activities are expected to commence in accordance with mutually agreed product development, regulatory and commercial launch timelines.
When big ASX news breaks, our subscribers know first
Inside the agreement: term, territory and operations
Under the agreement, Peak USA Inc. acts as the exclusive manufacturing partner for designated THC beverage products across its operating territory.
Term & Territory
-
Initial term of three years, with provisions for renewal.
-
Exclusive manufacturing of designated THC beverage products.
-
Territory comprises 13 US states: Pennsylvania, Illinois, Virginia, Ohio, Massachusetts, New Jersey, Nevada, New York, Michigan, Maine, Vermont, Connecticut and Rhode Island.
| Feature | Detail |
|---|---|
| Counterparty | BTAB Solutions Inc. |
| Contracting entity | Peak USA Inc. (wholly owned subsidiary) |
| Term | 3 years (renewal provisions) |
| Territory | 13 US states |
| Technology | Proprietary Envision™ emulsion technology |
Products will be manufactured through Peak’s established Florida production arrangement using the Company’s proprietary Envision™ emulsion technology. Branding will incorporate approved Fryday Kush® licensed intellectual property, including applicable name, image and likeness rights where authorised under the licensing arrangements.
Peak expects value to be generated through the manufacture and supply of finished beverage products, with revenue derived from commercial production volumes ordered by BTAB over the term. The timing and value of future revenues are currently unknown, as they will be contingent on the formalisation of distribution agreements, which will be driven by customer demand and fulfilment.
A proven partnership extends across the border
The agreement extends a working commercial relationship rather than a first-time arrangement. Peak has commercialised 14 products across multiple categories in Canada with BTAB, a longstanding Canadian partner.
The Company recently secured new Canadian beverage listings under the Fryday Kush banner. The agreement extends this established commercial relationship into the US.
The BTAB agreement follows a pattern Peak has established with other brand partners, including the Electric Brands manufacturing deal that locked in 1.4 million units annually with exclusivity provisions and renewal options stretching up to eight years.
Barry Katzman, Managing Director & CEO
“This is a landmark moment for Peak USA. As Canada’s leading co-manufacturer of THC beverages, we are excited to extend our successful Canadian partnership with BTAB Solutions into the United States through one of the industry’s most recognised and culturally significant cannabis brands.
The Agreement represents an important validation of our asset-light, scalable US strategy. It establishes our first dedicated US brand manufacturing partnership and demonstrates how we intend to create value by combining Peak’s proprietary technology and manufacturing expertise with an established consumer brand seeking to expand within the rapidly developing THC beverage category. It also delivers on our strategy of expanding into the US alongside existing Canadian partners while continuing to attract additional brands of this calibre.”
Board backs US as largest growth opportunity
Manik Pujara, Non-Executive Chairman
“This marks an important milestone in Peak’s expansion into the United States, a market the Board believes represents the Company’s largest long-term growth opportunity. Securing a partnership centred on an established and recognised brand such as Fryday Kush, together with the momentum the team has already demonstrated in Canada, reinforces our confidence in both management’s execution and the Company’s broader growth strategy.”
Why THC beverages matter — and why investors should care
THC beverages offer consumers a familiar, social and increasingly mainstream alternative to alcohol, and sit among the faster-growing segments of the US cannabinoid market.
The launch reflects a broader industry trend. Established cannabis lifestyle brands are increasingly expanding into the beverage category as consumers seek lower-calorie, sessionable alternatives to traditional cannabis formats.
According to Peak, brands with established consumer recognition, authenticity and cultural relevance are expected to have a competitive advantage as the category matures and retail distribution expands. This is where the Fryday Kush brand fits into the picture.
Fryday Kush® is an established cannabis lifestyle brand inspired by the enduring cultural legacy of the iconic Friday entertainment franchise. Since its launch in 2021, the brand has expanded across multiple categories including flower, pre-rolls, concentrates and vaporiser products in select North American and Australian markets.
Unlike many celebrity-associated cannabis initiatives that rely primarily on endorsement arrangements, Fryday Kush has evolved into a recognised cannabis brand platform supported by licensing, product development and retail distribution partnerships. For investors, the combination of brand recognition, Peak’s manufacturing technology and ongoing distribution discussions forms the core of the commercial rationale.
What it means for Peak and what comes next
The agreement aligns with what management has described as Peak’s asset-light, scalable US strategy, pairing the Company’s manufacturing capability with an established consumer brand.
Value is expected to be generated through the manufacture and supply of finished beverages, with revenue derived from commercial production volumes ordered by BTAB over the term of the agreement. Manufacturing is expected to commence in accordance with mutually agreed product development, regulatory and commercial launch timelines.
The timing and value of future revenues remain undisclosed and contingent on the formalisation of distribution agreements, which will be driven by customer demand and fulfilment. Investors should note these figures are currently unknown.
As Peak’s first US brand-partner manufacturing contract, the agreement provides what the Company believes is a meaningful platform for long-term growth in its US operations. The combination of an established consumer brand, Peak’s manufacturing capability and ongoing distribution discussions provides a commercial framework from which the parties intend to build the business over the term of the agreement.
For investors exploring how Peak intends to fund its accelerating production commitments across both Canada and the US, our detailed coverage of Peak’s $2.4M capital raise outlines the convertible note structure, the confirmed purchase orders backing the inventory build, and the company’s first month of positive EBITDA recorded in March 2026.
Don’t Miss the Next Consumer Sector Breakout
Big News Blast delivers FREE breaking ASX news and in-depth analysis directly to your inbox within minutes of release. Join 20,000+ investors who stay ahead of the market the moment announcements drop. Click the “Free Alerts” button at StockWire X to start receiving real-time coverage across Consumer, Healthcare, Tech and more.