In a press release today, Molson Coors Brewing (NYSE:TAP) announced it has completed a deal which will see it launching Truss CBD USA, a joint venture in Colorado making non-alcoholic CBD beverages. Its partner for the planned enterprise is HEXO Corp (NYSE:HEXO), a major licensed consumer cannabis producer from Canada which has been in business since 2013.
Truss CBD USA will operate as a largely independent entity, complete with its own executives, board of directors, and marketing department. CBD or cannabidiol, a non-psychoactive extract of hemp, does not contain THC, and is legal in the state of Colorado where Truss CBD USA will be based. CBD is currently a fad item appearing in products from sparkling sodas and lattes to lotions and brownies.
The prospective Colorado CBD drink enterprise is actually the second collaboration between Molson Coors and HEXO. The two companies have already partnered to create Truss Beverages in Canada to manufacture "adult non-alcohol beverage brands." While Truss Beverages isn't yet operational, it's nearing its public launch. Its has products formulated, marketing strategies in motion, and an Ontario production plant under construction.
Truss CBD USA will operate as a stand-alone brand, with Molson Coors owning a majority stake. Its CBD beverages will be produced and sold exclusively inside Colorado's borders to avoid running afoul of CBD's status as a controlled substance elsewhere in the U.S.
Molson Coors will keep itself free of legal entanglements by producing no CBD beverages at any of its own facilities. HEXO CEO Sebastien St-Louis says the new brand features "the leadership of Molson Coors, Powered by HEXO" and that he is thrilled by its potential.