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Molson Coors, HEXO Form Joint Venture To Make CBD Drinks For Colorado Market

Nina Zdinjak

Cannabis company Hexo Corp (NYSE: HEXO)(TSX:HEXO) is enhancing its collaboration with Molson Coors Beverage Co. (NYSE: TAP).

The two companies have agreed to create a new joint venture. Hexo announced Wednesday that the joint venture Truss CBD USA will now produce non-alcohol hemp-derived CBD beverages in the Colorado market.

Truss CBD USA will also be majority-owned by Molson Coors, and run as an independent company with its own board of directors and management team.

“CBD beverages are a growing segment within the non-alcohol beverage category and this JV provides us an opportunity to build capabilities in Colorado,” Molson Coors president of emerging growth, Pete Marino, said in a statement. “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.”

The two companies already have one joint venture for the production of non-alcohol cannabis-infused beverages for the Canadian market, named Truss Beverages, which should introduce first products later this year.

“Molson Coors and HEXO have already built a great partnership in Canada that we believe will produce some of the best adult non-alcohol beverage brands in the Canadian market,” Sebastien St-Louis, CEO and co-founder of HEXO stated. “I am thrilled with the opportunity to bring those learnings to Colorado, under the leadership of Molson Coors, Powered by HEXO.”

Related Links:

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HEXO Net Loss Hovers 8M in Q2, Remains Operational During COVID-19 Pandemic

Photo courtesy of Hexo

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