It appears that Molson Coors (TSX: TPX) (NYSE: TAP) is still interested in working with Hexo Corp (TSX: HEXO) (NYSE: HEXO) despite the current failure of the duo to get CBD and THC beverage products to market in Canada. Molson and Hexo announced this morning that they will be entering into a second joint venture for the purpose of manufacturing CBD infused beverages within the US.
The new joint venture, referred to as Truss CBD USA, will see the duo look to produce and sell non-alcoholic hemp derived CBD beverages within Colorado, Molson’s home state. The venture will be majority owned by Molson, with specifics on the venture’s ownership not provided. The joint venture however will have a standalone management team, board of directors, resources and go-to-market strategy.
All production of CBD beverages will occur at facilities separate from that of Molson Coors.
CBD beverages are a growing segment within the non-alcohol beverage category and this JV provides us an opportunity to build capabilities in Colorado. We chose Colorado because of its established regulatory framework for CBD and we plan to approach any opportunities in full alignment with our commitment to commercial responsibility, transparency and compliance.
Pete Marino, President of Emerging Growth, Molson Coors
The move has been identified as part of Molson’s strategy of diversifying beyond just “the beer aisle” via wine and spirits and non-alcoholic drinks. With respect to Truss Beverages, the duo’s Canadian joint venture, they indicated that products are to be launched in Canada “later this year” with no further specifics provided.
Further specifics on Truss CBD USA were not provided.
Hexo Corp last traded at $0.50 on the NYSE.
Information for this briefing was found via Sedar, Molson Coors, and Hexo Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
