• by Steve Ellwanger , November 21, 2022

Molson Coors is unwinding its U.S. joint venture with Hexo Corp. and will exit the CBD-infused beverage space by year’s end.

The companies’ relationship dates to 2018 when they formed Truss Beverages to make and distribute cannabis-infused drinks in Canada.

That led to the formation of Truss CBD USA, a joint venture that launched the CBD-infused beverage brand Veryvell in 2020 in Colorado.

At the time, Molson Coors Pete Marino, president of emerging growth, described CBD beverages as “a growing segment within the non-alcohol beverage category.”

Truss CBD USA also positioned Molson Coors and Hexo for the potential distribution of cannabis-infused beverages.

However, federal legalization of cannabis is nowhere on the horizon while the U.S. Food and Drug Administration’s lack of regulations for CBD in beverages and food has kept many large retailers from selling CBD products.

“Not every project or innovation will meet our ambitions,” Marino said last week in announcing the unwinding of Truss CBD USA.

“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.”

According to research from Brightfield Group, in the first half of 2022 the top CBD-infused beverage brands were Recess, Kill Cliff and Daytrip.

“As we still have not seen regulatory guidance from the FDA that would allow for these products to be sold at scale within the U.S. market, opportunities for this category are limited for the foreseeable future,” Brightfield Group managing director Bethany Gomez tells Marketing Daily.

In a report released last week, research firm Veylinx said that CBD-infused beverages are the top performers in the canned, non-alcohol drinks category based on a survey of 418 U.S. adults ages 21+.

“Adding CBD to a $12 four-pack of non-alcoholic canned cocktails increases demand by 13%, the report noted.

“For men, the CBD-enhanced version is the most popular, driving 16% more demand than a standard non-alcoholic cocktail.”

Spiking non-alcohol drinks with CBD boosts demand by 18% among consumers ages 21-35, according to Veylinx.