Some analysts predict a four-figure return thanks to Hexo’s arrangement with Molson Coors
Instead of making a direct entry into the cannabis market, one of the most popular beverage brands in Canada, Molson Coors Canada Inc., is partnering with a cannabis venture to bring new products to the market. By signing a deal with cannabis company Hexo to co-create and co-market cannabis-infused products, Molson Coors is in great shape to expand its footprint. This partnership – which was set up in 2019 – has the potential to take Hexo’s share through the roof based on the current market cap and popularity Molson has in Canada, which makes it an attractive stock to consider for a profitable investment.
Even though Molson has enormous popularity, the market has evolved, and Molson has seeing its market share decline gradually as more craft producers step in. So, this is a match made in heaven, as Molson was looking for ways to not only recover its market cap, but also to take it to a new level with tetrahydrocannabinol (THC)-infused products.
Hexo, on the other hand, is a cannabis venture that has been seeking to stand out from the rest, and, instead of focusing on growing its own production operations, it has been securing long-term partnerships. This business model that Hexo employs was specially built for outside companies to join in the co-creation of products; therefore, each company only has to do what they know how to do best, and the rest will be in hands of the other partner.
“Molson Coors and Hexo have formed a joint venture to explore opportunities for non-alcohol hemp-derived CBD beverages in Colorado: part of Molson Coors’ strategy to grow beyond the beer aisle,” reports Beverage Daily, which means that these products are heading to the US market as well. This is the best time to acquire Hexo stocks as shares are still being traded near all-time lows.