The Molson Coors Beverage Co. is getting out of the CBD drink business in the United States and ending its U.S. Truss joint venture with Canadian cannabis producer Hexo Corp. as of Dec. 31.
The Canadian Truss joint venture between Molson Coors and Hexo will continue, according to industry news source Beverage Daily.
Molson Coors was concerned about regulatory uncertainty surrounding marijuana products in the U.S., the company said in a Nov. 22 blog post.
The beverage maker cited “no near-term pathway to federal legalization,” adding that “some chain retailers and distributors (have been) hesitant to accept CBD beverage brands, complicating distribution and making the path to profitability a challenge.”
Molson Coors said it would consider reentering the U.S. cannabis beverage market in the event of a regulatory change at the federal level.
In 2021, Hexo’s U.S. subsidiary acquired a production facility in Fort Collins, Colorado, to create CBD drinks for the U.S. Truss joint venture as well as other, non-beverage products in the future.
In an Oct. 31 quarterly filing, Hexo said Truss products were “now present across select grocery markets within Colorado” and 25 other states.
Hexo said it stopped trying to sell the Fort Collins facility during its fourth quarter.