Molson Coors Canada, the Canadian branch of the famous brewing company Molson Coors (NYSE: TAP; TSX: TPX), has announced a joint venture partnership with The Hydropothecary Corporation (TSX: HEXO) to develop a product line of non-alcoholic, cannabis infused beverages for the recently legalized recreational market.
Molson Coors has decades of brewing, manufacturing, and distribution experience selling alcoholic beverages under the well-known beer brand Coors. The Hydropothecary Corporation is involved in the cultivation, processing, and distribution of the cannabis plant and its by products. HEXO currently operates 300,000 sq. ft. of production space to develop cannabis based products.
The newly formed company under the joint venture has not been named yet but, both companies have decades of management experience in their respective professions. Molson Coors Canada will own 57.5% interest in the product whereas The Hydropothecary Corporation will own 42.5%.
“HEXO continues to lead the way for smoke-free cannabis innovation in Canada. We are excited about this partnership with Molson Coors Canada, an iconic leader in adult beverages, as we embark on the journey of building a brand new market. With this new company, we are bringing together Quebec’s oldest, most established company with one of its newest success stories in a truly innovative partnership,” said HEXO’s CEO and co-founder Sebastien St-Louis.