Although Health Canada did not make the rollout of the cannabis 2.0 market as seamless as possible, we believe that some of the big issues with the program have been fixed. As companies successfully bring cannabis 2.0 products to market, we expect medical and recreational sales numbers to continue to rise and this is a trend that we are bullish on.
Even though we like to blame Health Canada for many of the issues with the cannabis market, much of the blame can be put on the companies. For example, HEXO Corp. (HEXO.TO) (HEXO) was expected to be a leader in the cannabis 2.0 market due to the strategic relationship that it has with Molson Coors (TAP.CN).
After more than 18 months, the HEXO and Coors partnership seems to be gaining traction and this is a development that we are closely following. During the last year, HEXO has been under substantial pressure and we believe that the relationship with Coors could prove to be the catalyst that the Canadian cannabis producer needed.
Truss Beverage Co. is the name of brand that was formed by the companies and we will monitor how the brand is able to gain traction with consumers. According to a new study from Truss Beverage, 71% of Canadians of legal age cite smoking as the primary barrier to consuming cannabis, with 74% saying the smell of cannabis on their clothing is an issue (based on the Cannabis Culture Report 2020: Cannabis Usage & Attitudes, DIG Insights, May 2020).
Earlier this week, Truss Beverage introduced 5 cannabis beverage brands and plans to rollout one of the widest cannabis beverage portfolios to the Canadian market. The market has responded very favorably to developments that are related to the partnership with Molson Coors and expect this announcement to serve as a catalyst for the stock.
Truss’ cannabis beverage portfolio includes a variety of CBD and THC products that are full of natural flavors and we are favorable on the diversity of the product line. The products that were rolled out include:
- Little Victory: Naturally flavored sparkling beverages
- House of Terpenes: A range of sparkling tonics with botanically sourced terpenes
- Mollo: Crisp with an easy drinking taste
- Veryvell: A complete line-up of products to support self-care
- XMG: Bold and high intensity flavored beverages
One of the reasons we are excited about the relationship with Molson Coors is due to the experience and the track record that the alcohol conglomerate has. Backed by 150 years of beverage experience, Truss Beverage is highly focused on the development of a range of cannabis beverages that focus on great taste, consistency and choice.
Truss Beverage has a well-rounded portfolio of cannabis beverages that are designed to meet the needs of consumers and we are favorable on the brand that is backing the product line. We believe that the launch of high-profile brands like Truss will bring new consumers to the cannabis market and expect this development to support the growth of the entire industry.
As mainstream brands continue to jump on the cannabis (CBD and THC) bandwagon, we expect more consumers to join the movement. We continue to believe that the cannabis industry is in the early innings of a major growth cycle and believe that companies like Molson Coors add more credibility to the industry.
Over the next few months, Truss Beverage plans to continue to roll out new cannabis beverage products. All beverages within Truss’ portfolio offer a controlled dosage and we expect this aspect of the brand to attract new consumers. Many consumers trust the Molson Coors brand and we expect this to benefit HEXO over the long-term.
If you are interested in learning more about how HEXO and Molson Coors plan to capitalize on the cannabis beverage market through Truss Beverage, please send an email to email@example.com to be added to our distribution list.