Jefe127 wrote: In early October, a substantial JV cannabis beverage announcement came from Molson Coors Canada (MCC), the Canadian business unit of Molson Coors Brewing Company, and HEXO Corp. (TSX: HEXO) (OTC:HYYDF). They reported the formation of a joint venture to pursue opportunities to develop non-alcoholic, cannabis-infused beverages for the Canadian market following legalization.
The joint venture, Truss, is led by former Molson Coors executive, Brett Vye, in the role of Chief Executive Officer. Vye reports to the Truss board of directors consisting of three members appointed by MCC and two members appointed by HEXO.
Mark Hunter, President and CEO of Molson Coors was quoted in an article earlier this month saying “clearly there are lots of numbers being bandied around with regard to the potential size of the cannabis market in Canada.” He went on to say, “I think, if you take the average, then it suggests that the market may be somewhere between $7 billion and $10 billion in market value, with beverages somewhere between 20% and 30%, and that’s obviously non-alcoholic cannabis infused beverages. Even if you take the low end of that estimate, then it suggests that the beverages segment could be circa $1.5 billion of value. We’re well placed to take a meaningful share of that segment.”
Not only are many companies looking to be the first to the beverage market, whether locally or internationally, but the consumer demand seems to be pushing that direction as well.
According to one survey, “76% of US and Canadian’s surveyed said they would use legal cannabis-infused products for therapeutic reasons, with nearly a quarter indicating that they'd try recreational cannabis via skincare products like lotions, creams and lip balms. 41% of the participants said they'd be more likely to try recreational cannabis through food, slightly higher than the 39% of those surveyed who said they would smoke it.”
There has been heavy investment into this concept, the largest example being the $5 Billion CAD [$4 Billion USD] investment from Constellation Brands into Canopy Growth Corp. (NYSE:CGC) (TSX:WEED), though speculation continues around Coca Cola’s interest in the Cannabis sector.
https://www.globenewswire.com/news-release/2018/11/13/1650665/0/en/Joint-Ventures-are-Leading-the-Cannabis-Beverage-Space-into-the-Future-Sproutly-Canada-CSE-SPR-OTCQB-SRUTF-Hexo-Corp-Canopy-Growth.html