HEXO TOOK A DIFFERENT PATH "From the start, Hexo took a different path. When the industry was booming in 2018, most competitors tried to ramp production as quickly as possible. We realize now that this was a poor strategy. Raw cannabis is a commodity, and higher industry supply means lower pricing, which causes profits to evaporate.
To avoid this, Hexo focused on value-add products. That included branding its production to instill customer loyalty and pricing power, similar to what Coca-Cola did with sugar and water.
It’s no wonder, then, that Hexo partnered with Molson Coors to co-launch a cannabis-infused beverage. Hexo brings the marijuana expertise, while Molson provides the brand power.
Value-add products like this, those that are backed by trusted brands, have the best odds of generating profits for shareholders. Molson knows that first-hand, which is why it partnered with Hexo in the first place."
The Motley Fool recommends HEXO. and HEXO. Fool contributor Ryan Vanzo has no position in any stocks mentioned.
https://www.fool.ca/2020/07/11/buy-alert-molson-coors-tsxtpx-b-might-buy-this-pot-stock/