Molson Coors exits CBD market in the US
Molson Coors will unwind its Truss USA joint-venture and exit the CBD beverage business in the United States at the end of this year.
The beverage giant cites a lack of certainty over federal legalization of cannabis products: resulting in an unwillingness from other stakeholders (such as retailers and distributors) to take on CBD brands.
It also highlights its strengths are in its ability to scale-up brands – which simply hasn’t been possible in the small US market and doesn’t look likely to become possible in the near future.
Molson Coors is one of several beverage giants which has been taking steps into the cannabis beverage market in North America: hoping to gain that first-mover advantage. Truss USA a joint venture between Molson Coors and cannabis producer HEXO Corp launched in 2020 (mirroring their continuing Canadian joint venture which was launched in 2018).
But without any clear path for federal legalization in the US (in contrast to Canada which legalized edibles in 2019) Molson Coors has decided to concentrate on other areas outside the beer aisle that offer the most potential.
Commenting on this month’s announcement to exit the US market, Pete Marino, president of emerging growth, said: “Not every project or innovation will meet our ambitions. What’s important is that we learn from each and build capabilities that will serve us well into the future.
“The key for us is to go big behind what’s working and smartly pivot out of what isn’t working from a scale standpoint, like CBD beverages.”