Molson Coors Beverage Company’s TAP Canada cannabis joint venture Truss USA, in association with HEXO USA Inc., which is a subsidiary of HEXO Corp HEXO, is expanding its CBD beverages line — Veryvell. With such endeavors, Truss is emerging to be a market leader in the Canada cannabis beverage market.
The functional beverage line, which was launched in 2020, has garnered consumers’ attention. As a result, Truss is now likely to expand it across 17 states, including Alaska, Arkansas, Colorado, Connecticut, Florida, Iowa, Kentucky, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Texas, Vermont, Virginia, and West Virginia. Customers can order on www.trusscbdusa.com and in select Colorado stores with the benefit of doorstep delivery.
The hemp-derived CBD sparkling water is non-alcohol, adaptogenic, with zero sugar and zero calories. It comes in three premium flavors and is available in 12 oz cans. Meanwhile, Veryvell unflavored beverage drops contain water-soluble blends of CBD and adaptogens.
Molson Coors has also entered the fast-growing RTD cocktails space with an exclusive equity and distribution agreement with Superbird, and above-premium tequila-based Paloma. The company expects to deliver significant growth through the entire lineup of hemp-derived CBD beverages and the fast-growing RTD cocktails. This is likely to drive its emerging drug division to become a $1-billion business in revenue terms by 2023.
The expansion of Veryvell and venture into the RTD cocktails space is part of the company’s “beyond beer” approach.
Other Notable Initiatives
In sync with the “beyond beer” approach, Molson Coors remains on track with its hard seltzer ambition, focused on the growth of hard seltzers in the United States. The Zacks Rank #4 (Sell) company’s share in the U.S. hard seltzer segment doubled in second-quarter 2021.
The Vizzy brand gained almost a full point share in the United States in the second quarter, driven by the launch of the Lemonade variety pack. The company launched the Vizzy Watermelon pack, which has been a hit with retailers. Outside the United States, the Canada hard seltzer portfolio is performing well with the Vizzy and Chris Hard Seltzer. In Europe, it is witnessing strong growth for Three Fold in the U.K., and Wai Moment in Central and Eastern Europe. Apart from the seltzer portfolio, the company’s Blue Moon LightSky beer has attained the top-volume share gainer rank in the U.S. craft segment.
It is progressing well with the revitalization plan that aims at achieving sustainable top-line growth by streamlining the organization, and reinvesting resources into its brands and capabilities. The company intends to invest in iconic brands and growth opportunities in the above-premium beer space; expand in adjacencies and beyond beer; and create digital competencies for commercial functions, supply-chain-related system capabilities and employees.
To facilitate these investments, the company plans to generate savings of $150 million by simplifying its structure. The cost-saving program, announced in 2020, targets cost savings of $600 million over three years. Of this, it generated $270 million of cost savings in 2020. The company expects to generate the remaining savings in equal parts in 2021 and 2022.
Management, on its last reported quarter’s earnings call, predicted 2021 to be a year of top-line growth and business investments. Its guidance also assumes persistent strength in the above-premium portfolio, particularly hard seltzer. The company anticipated net sales growth in the mid-single digits at constant currency in 2021.
Shares of the company have gained 5.4% year to date against the industry’s 4.1% decline.
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