HEXO HEXO: A Cannabis Beverage Leader in the Making?
HEXO Corporation (HEXO.TO) (HEXO) is a Canadian cannabis producer that has a partnership with Molson Coors (TAP.CN) and has attractive leverage to the 2.0 market. Although relationship was formed years ago, the partnership has been quickly gaining steam and is an opportunity that we are closely following.
Earlier this year, the companies initially launched 5 cannabis infused beverages that would be sold under the brand Truss Beverage Co. According to a study from Truss Beverage, 71% of Canadians of legal age cite smoking as the primary barrier to consuming cannabis (based on the Cannabis Culture Report 2020: Cannabis Usage & Attitudes, DIG Insights, May 2020) and we are bullish on the growth prospects that are associated with Truss.
In the US, the companies plan to sell CBD beverages and we will monitor how the product is able to gain traction. Once cannabis is legalized in the US, we expect the relationship to expand the types of products that are being sold in the US and will monitor how the companies are able to capitalize on a burgeoning growth vertical.