After a successful launch in Colorado last year, a joint venture between Hexo Corp (Nasdaq: HEXO) and Molson Coors Beverage Company (NYSE: TAP) is expanding distribution of its Veryvell CBD beverage brand to a slew of new states.
On Wednesday, Truss CBD USA — a partnership between Hexo subsidiary Hexo USA Inc and Molson Coors — said Veryvwell will be available in 17 states.
Customers in Alaska, Arkansas, Colorado, Connecticut, Florida, Iowa, Kentucky, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Texas, Vermont, Virginia and West Virginia can have the sparkling CBD drinks delivered to their door via the Truss website.
The launch features three 20-milligram, zero-calorie sparkling drinks, and three 500-milligram, water-soluble beverage drops. All the products contain “broad spectrum” hemp and less than 3-per-cent THC.
Veryvell is at the forefront of an emerging category of drinks, and “resonated well with the Colorado consumer,” according to Truss CBD USA general manager Jane Armstrong Hockman.
In a statement, emerging growth president for Molson Coors Pete Marino said the brand demonstrates the progress his firm is making in its transition beyond beer to a “true beverage company.”
Hexo CEO Sebastien St. Louis says they’re ready to expand on Truss’s success in Canada and Colorado.
“We believe we have developed some of the highest quality, most reliable brands in the market by utilizing our Powered by HEXO technology, and are excited to have the opportunity to share Veryvell with consumers across the U.S.,” he said.
Last August, Hexo and Molson Coors launched in Canada with five weed drinks — Mollo, House of Terpenes, Veryvell, Little Victory and MXG — and has expanded the offerings since then.
Read more: Hexo cuts losses, bets big on pot drinks
Read more: Cannabis flower likely to remain dominant consumer choice: Headset
As Hexo struggled to gain additional market share in Canada’s competitive pot sector, it made big bets on drinks. After announcing a 42.5-per-cent stake in Truss Beverage Co., the firm predicted drinks to capture 15 per cent of the Canadian market.
But while enthusiasm for weed drinks hasn’t completely fizzled out, it’s not likely pot pops will ever get that much juice.
Edibles and concentrates are likely to remain niche categories when it comes to cannabis sales. Chart via Headset.
According to data company Headset, edibles overall make up just 4.3 per cent of the Canadian market and 9.9 per cent of America’s. Demand for a varieties should stay strong, but it’s hard to imagine a scenario where flower, pre-rolls and vapes don’t eat up the lion’s share of baskets.
Hexo stock fell almost 5 per cent Wednesday to US$1.72 on the Nasdaq.
nick@mugglehead.com
