Startup Pabst Labs is moving forward on plans to open its first production and distribution facility dedicated to cannabis beverages in Desert Hot Springs, CA as the company looks to expand its position in the burgeoning market for THC-infused drinks.

“The goal when building our factory was to establish a standard for quality and efficiency that would set the bar in all cannabis infused beverages for years to come. It’s a game changer,” Chuck Barlick, director of production for Pabst Labs, told Benzinga, adding that the location “will operate under customary world-class manufacturing practices, such as HACCP, SQF, GMPs, Lean Manufacturing, and Visual Work Instructions.”

Once operational, the location will manufacture non-alcoholic, THC-containing Pabst Blue Ribbon Cannabis Infused Seltzer products, as well as cannabis beverages for other brands under contract.

The facility’s advanced capabilities “will raise beverage quality and opportunity across the industry,” Barlick said in a Food & Wine report.

Beer brewing companies have taken an interest in the cannabis beverage space in recent years. A Molson Coors joint venture rolled out a new CBD-infused sparkling water in the Colorado market last year. Moosehead formed a joint venture in 2019 to develop seltzers that incorporate hemp extracts.

A recent report by Grandview Market Research forecasts the global cannabis beverages market, which includes THC- and CBD-infused drinks, will grow to a value of $2.8 billion by 2025. North America is expected to witness the fastest and largest growth over the next five years.

Beverages produced at the new site will be distributed in California by wholesale distribution and services firm Nabis.

Editor's Note: An earlier version of this story incorrectly stated that Pabst Labs is a subsidiary of the Pabst Brewing Co. It is an independent company. Pabst Labs was established by a group of cannabis beverage experts and former employees of Pabst Brewing Co. who were granted the rights to create a line of cannabis-infused drinks under the Pabst Blue Ribbon name. We apologize for this error.