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A joint venture between HEXO and Molson Coors has confirmed the details of its first line of cannabis-infused beverages.
Truss Beverage, a cannabis drinks joint venture (JV) between Molson Coors Brewing Company (NYSE:TAP,TSX:TAP) and a Canadian marijuana producer, has unveiled its line of products.
HEXO (NYSE:HEXO,TSX:HEXO) formed the JV partnership with Molson in 2018 to oversee the development of cannabis-infused beverages.
On Thursday (October 17), Truss confirmed to the market that it will partner with Flow Alkaline Spring Water to launch a line of cannabidiol (CBD) water.
“We know CBD products are in high demand in Canada, especially within the growing self-care space. The Truss product portfolio will include a range of products with CBD, THC or both,” Brett Vye, CEO of Truss Beverage, said in a statement.
The line of drinks from Truss made in partnership with Flow Alkaline Spring Water represents only a portion of the total offerings from the JV.
“With more than 80 percent of the Truss portfolio of products being low-to-mid level dose, we’ll offer safe, consistent and unique beverages for every adult consumer and a full range of occasions,” Vye said.
Mockup of the planned beverage line Flow Glow from Truss, a JV from HEXO and Molson Coors. Image courtesy of Truss Beverage.
The announcement was made on the same day that edibles and infused cannabis products were legalized in Canada.
These products, including the newly announced Truss drinks, won’t become available until mid-December due to regulation standards in Canada.
Health Canada, the country’s federal agency overseeing the marijuana industry, has put in place a 60 day review period for new cannabis products. This means any new products will be available for sale on December 17 of this year at the earliest.
“It is expected that a limited selection of products will appear gradually in physical or online stores, and no earlier than mid-December 2019,” Health Canada said in June.
Cannabis-infused drinks have gained the collective attention of investors as several producers have placed heavy bets on the popularity of this product category.
“Big alcohol and beverage companies are very interested and believe that there’s something there that matches their product line,” Elliot Johnson, chief investment officer and chief operating officer with Evolve Funds Group, previously told the Investing News Network.
“I think the larger licensed producers that can … will have a portfolio of products, and different brands will speak to different consumers,” said Emma Andrews, chief commercial officer of BevCanna (CSE:BEV).
Shares of HEXO in Toronto and New York jumped 17 percent in value on Thursday to close at C$2.89 and US$3.81, respectively. Molson Coors also rose to close the trading session at a price of US$57, representing an increase of 1.21 percent.
Overall, marijuana stocks noticed a boost on Thursday thanks to the second phase of legalization.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: BevCanna is a client of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.