Molson Coors and HEXO Corp Expand Partnership with Joint Venture in Colorado
April 15 2020 - 8:57AM
Business Wire
Molson Coors Beverage Company (“Molson Coors”) (NYSE: TAP; TSX:
TPX) and HEXO Corp (“HEXO”)(TSX: HEXO; NYSE: HEXO) have formed a
joint venture to explore opportunities for non-alcohol hemp-derived
CBD beverages in Colorado. Established in Colorado, the joint
venture (“Truss CBD USA”) will be majority owned by Molson Coors
and will operate as a standalone entity with its own board of
directors, management team, resources and go-to-market
strategy.
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“CBD beverages are a growing segment within the non-alcohol
beverage category and this JV provides us an opportunity to build
capabilities in Colorado,” said Molson Coors president of emerging
growth Pete Marino. “We chose Colorado because of its established
regulatory framework for CBD and we plan to approach any
opportunities in full alignment with our commitment to commercial
responsibility, transparency and compliance.”
Exploring hemp-derived CBD beverages is part of Molson Coors’
strategy to grow beyond the beer aisle with wine and spirits and
non-alcohol drinks. Molson Coors and HEXO have another joint
venture to produce non-alcohol cannabis-infused beverages for the
Canadian market called Truss Beverages (“Truss”). Truss has been
preparing for launch, including completion of product formulations,
branding and construction of a cannabis beverage production
facility in Belleville, Ontario. Truss is expected to launch its
first beverages in Canada later this year.
“Molson Coors and HEXO have already built a great partnership in
Canada that we believe will produce some of the best adult
non-alcohol beverage brands in the Canadian market,” added
Sebastien St-Louis, CEO and co-founder of HEXO. “I am thrilled with
the opportunity to bring those learnings to Colorado, under the
leadership of Molson Coors, Powered by HEXO.”
All production and distribution for Truss CBD USA will be kept
within Colorado state lines since it is one of a few states that
has an established regulatory framework for hemp-derived CBD in
food and beverages. No hemp-derived CBD products will be produced
at Molson Coors facilities.
Overview of Molson Coors Beverage Company
For over two centuries Molson Coors has been brewing beverages
that unite people for all of life’s moments. From Coors Light,
Miller Lite, Molson Canadian, Carling, and Staropramen to Coors
Banquet, Blue Moon Belgian White, Saint Archer Gold, Leinenkugel’s
Summer Shandy, Creemore Springs and more, Molson Coors produces
some of the most beloved and iconic beer brands ever made. While
the company’s history is rooted in beer, Molson Coors offers a
modern portfolio that expands beyond the beer aisle with sparkling
cocktails, hard coffee, canned wine, kombucha, cider and more.
Molson Coors Beverage Company is a publicly traded company that
operates through Molson Coors North America and Molson Coors
Europe, and is traded on the New York and Toronto Stock Exchanges.
The company’s commitment to raising industry standards and leaving
a positive imprint on our employees, consumers, communities and the
environment is reflected in Our Beer Print and our 2025
sustainability targets. To learn more about Molson Coors Beverage
Company, visit www.molsoncoors.com.
Overview of HEXO Corp
HEXO Corp is an award-winning consumer packaged goods cannabis
company that creates and distributes innovative products to serve
the global cannabis market. The Company serves the Canadian
adult-use markets under its HEXO Cannabis and Up Cannabis brands,
and the medical market under HEXO medical cannabis. For more
information please visit hexocorp.com.
Forward-Looking
Statements
This press release includes “forward-looking statements” within
the meaning of the U.S. federal securities laws. Generally, the
words “believe,” “aims”, “expect,” “intend,” “anticipate,”
“project,” “will,” “outlook,” and similar expressions identify
forward-looking statements, which generally are not historic in
nature. Statements that refer to expectations around CBD beverages,
related regulatory framework, growth plans, and other
characterizations of future events or circumstances are
forward-looking statements. Although the Company believes that the
assumptions upon which its forward-looking statements are based are
reasonable, it can give no assurance that these assumptions will
prove to be correct. Important factors that could cause actual
results to differ materially from the Company’s historical
experience, and present projections and expectations are disclosed
in the Company’s filings with the Securities and Exchange
Commission (“SEC”). These factors include, among others, the impact
of the COVID-19 virus pandemic; the impact of increased competition
resulting from further consolidation of brewers, competitive
pricing and product pressures; health of the beer industry and our
brands in our markets; economic conditions in our markets;
additional impairment charges; our ability to maintain
manufacturer/distribution agreements; changes in our supply chain
system; availability or increase in the cost of packaging
materials; success of our joint ventures; risks relating to
operations in developing and emerging markets; changes in legal and
regulatory requirements, including the regulation of distribution
systems; fluctuations in foreign currency exchange rates; increase
in the cost of commodities used in the business; the impact of
climate change and the availability and quality of water; loss or
closure of a major brewery or other key facility; our ability to
implement our strategic initiatives, including executing and
realizing cost savings; our ability to successfully integrate newly
acquired businesses; our ability to achieve expected tax benefits,
accretion and cost savings relating to our acquisition of
MillerCoors; pension plan and other post-retirement benefit costs;
failure to comply with debt covenants or deterioration in our
credit rating; our ability to maintain good labor relations; our
ability to maintain brand image, reputation and product quality;
and other risks discussed in our filings with the SEC, including
our most recent Annual Report on Form 10-K and our Quarterly
Reports on Form 10-Q. All forward-looking statements in this press
release are expressly qualified by such cautionary statements and
by reference to the underlying assumptions. You should not place
undue reliance on forward-looking statements, which speak only as
of the date they are made. We do not undertake to update
forward-looking statements, whether as a result of new information,
future events or otherwise.
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Molson Coors Contact Info: Investor Relations:
Greg Tierney (414) 931-3303 Media Relations: Matt Hargarten
(414) 745-8408 HEXO Contact Info: Investor Relations:
Jennifer Smith 1-866-438-8429 invest@HEXO.com Media
Relations: (819) 317-0526 media@hexo.com
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