HEXO Corp. Continues To Roll Out Truss Beverages Throughout Canada Capturing Substantial Marketshare

HEXO Corp. Continues To Roll Out Truss Beverages Throughout Canada Capturing Substantial Marketshare

Cannabis infused products represents a burgeoning vertical of the cannabis industry and we have noticed a large increase in the number of brands that are focused on this opportunity following the legalization of cannabis derivative products in Canada.

HEXO Corporation (HEXO.TO) (HEXO) is a Canadian cannabis producer that has taken shareholders on a roller coaster ride over the last two years. Although the company has been slow to execute, the partnership that it has with Molson Coors (TAP.CN) has been gaining steam and this is a trend that our readers should be aware of.

A few months ago, HEXO and Molson reported a major milestone as it relates to the partnership and introduced 5 cannabis beverage products in Canada. Truss Beverage Co. is the name of brand that was formed by the companies and we are favorable on how the opportunity has advanced so far this year.

According to a study from Truss Beverage, 71% of Canadians of legal age cite smoking as the primary barrier to consuming cannabis (based on the Cannabis Culture Report 2020: Cannabis Usage & Attitudes, DIG Insights, May 2020). The cannabis infused product market provides consumers with a more discreet way to consume and expects brands like Truss to be a beneficiary of the increasing demand.

One of the reasons we are bullish on the Truss brand portfolio is related to diversity of the product line. Truss Beverage has a well-rounded portfolio of cannabis beverages and will sell both cannabidiol (CBD) and tetrahydrocannabinol (THC) products that are designed to meet the needs of consumers.

Another reason we are favorable on the relationship is related to the track record that is associated with Molson Coors in the beverage space. We believe that the launch of high-profile brands like Truss will result in an increase in the number of Canadian cannabis infused product consumers and expect the industry to benefit from the involvement from companies like Molson Coors.

Before the end of the year, Truss plans to roll out additional cannabis beverage products and are favorable on the trend for HEXO. The product line offers consumers a controlled dose of cannabis and we expect this to play a key role in how the brand is able to attract new consumers.

The last few months have been significant for HEXO. The company recently hired a new Chief Financial Officer (CFO) and also reported to have entered into an agreement to launch medical cannabis products in Israel. We are favorable on how the story has advanced and believe that HEXO could prove to be a turnaround story if it can execute on previously announced initiatives.

In June, HEXO received a few price target increases from leading Canadian broker-dealers and this is an important trend for the business. During the last month, HEXO has traded in a volatile pattern and we continue to closely follow the opportunity.

If you are interested in learning more about HEXO Corporation, please send an email to support@technical420.com to be added to our distribution list and to stay up to date with the opportunity.

Share

Share - Facebook


Share - Twitter

Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

Published at Fri, 02 Oct 2020 11:09:55 +0000

Comments are closed.