Molson Coors And Hexo Target U.S. CBD Market, Beginning With Colorado Joint VentureApril 21, 2020
Canadian cannabis producer Hexo is bringing its joint venture with Molson Coors to the U.S. The joint venture, Truss Beverages, has been active in Canada for more than a year and has a number of cannabis beverages in the development pipeline. Its first release, Flow Glow CBD spring water, hit retail in Canada in late 2019. The new U.S. venture, initially focused on the Colorado market, is called Truss CBD USA.
As the name of the U.S. venture implies, Hexo will limit itself to CBD drinks in Colorado, rather than THC. “CBD beverages are a growing segment within the non-alcohol beverage category and this joint venture provides us an opportunity to build capabilities in Colorado,” said Molson Coors president of emerging growth Pete Marino. “We chose Colorado because of its established regulatory framework for CBD.” The company will be majority-owned by Molson Coors but operate as a standalone entity with its own board of directors, management team, and market strategy, and no CBD products will be produced at Coors facilities.
While asserting that Truss Canada has made significant progress on its beverage program—having completed product formulations, branding, and construction of a cannabis beverage production facility in Belleville, Ontario—the partners were coy on whether Canadian brands like Flow Glow will come to the U.S., saying only that “the joint venture will leverage Truss Beverages portfolio of brands and will assess when and whether to build, borrow, and/or buy brands to accelerate growth.”—Danny SullivanSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.