Santa Rosa's CannaCraft, Napa's House of Saka negotiating cannabis wine joint venture

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House of Saka, a Napa-based vintner, is negotiating a joint venture with Santa Rosa-based cannabis company CannaCraft to make and distribute a nonalcoholic cannabis-infused rosé-style beverage.

That is according to Cynthia Salarizadeh, House of Saka founder and chief strategy officer, and Tracey Mason, co-founder, CEO and CannaCraft’s chief innovation officer since February.

Asked about the deal, a spokesperson for CannaCraft wrote in an email, “It would be correct to say that we are in discussions with House of Saka.”

Salarizadeh said the deal had not been finalized and “there are no terms on the table yet.”

Mason said House of Saka would be producing about 500 cases in its initial run. The company, which was founded in March 2018, has been working with Cannacraft over the last four to six months.

“While I was talking with them about House of Saka they fell in love with the idea and in some ways fell in love with me and wanted to bring me on board to help their business development and innovation and marketing team,” Mason said.

Salarizadeh said the beverages will be going out of CannaCraft's manufacturing facility.

"It will be distributed by them, and they’re the sole investors,” she said.

CannaCraft has already seen success in its partnership with Petaluma-based Lagunitas Brewing Co. to make HiFi Hops, a hops- and cannabis-infused sparkling water.

Cannabis beverages made up 5% of the edibles market nationwide, with annual sales of $30 million through November 2018, according to BDS Analytics, a market research firm for the legal cannabis industry. BDS also predicts that by 2022, the U.S. edibles market could reach $3.4 billion, with cannabis beverage sales seeing a jump to $374 million.

Editor’s note, July 22, 2019: A previous version of this story incorrectly stated the nature of the venture between House of Saka and CannaCraft due to incorrect information provided to the Business Journal.

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