Molson Coors Beverage Company (TAP - Free Report) retains its pace of introducing new flavors and variations for its customers. After the successful nationwide launch of the Vizzy hard seltzer early this month and the Leinenkugel’s Spritzen beer in March, the company rolled out a new line of canned wine spritzers — Movo — in the United States. Moreover, it formed a new joint venture with HEXO Corp. (HEXO - Free Report) to explore opportunities for CBD-infused beverages in Colorado.
Molson Coors’ Movo spritzer comes in three flavors, including Peach White Blend, Raspberry Rosé and Blood Orange Sangria. This marks the company’s biggest step in the fast-growing wine category.
Apart from natural flavors, the new spritzer contains wine, sparkling water and fruit juice, with no added sugar, and is gluten-free. It is packed in four different types of slim cans, with each 8.4-ounce can containing 100 calories. Further, the novel variant of traditional wine is low in alcohol content, with only 5.5% of alcohol by volume. Therefore, it is light, refreshing and easy-to-drink compared with traditional wines.
The Movo wine spritzer has been making an appearance on shelves since March, with the brand now launched nationwide. Movo represents one of Molson Coors’ key innovations in recent months, which places the company on track with its strategy of expanding beyond the beer aisle into wine and spirits and non-alcohol drinks as well as adjacent categories.
In sync with its plans to innovate in the low-calorie beverage line, the company also recently launched Leinenkugel’s Spritzen beer, which is a new segment within beer, with a splash of seltzer. It has three flavors, namely Grapefruit, Pineapple Strawberry and Raspberry Lemon, and 4.2% alcohol by volume. The light variant has the attributes to grab a space in the hard seltzers category but at its core, it is a beer. Earlier, the company launched the Vizzy hard seltzer, with a national rollout in April, which already gained prominence in the hard seltzers market.
Moreover, Molson Coors has established a new joint venture (“JV”) in Colorado with HEXO Corp., which will be known as Truss CBD USA. Molson Coors will have the majority ownership in the new JV, operating as a separate entity with its own board of directors, management team and market strategy. The new JV will primarily focus on capturing opportunities in the fast-growing non-alcoholic hemp-derived CBD beverages in Colorado.
The Colorado state has an established regulatory framework for hemp-derived CBD in food and beverages, making it the right choice for the JV. The companies plan to keep all the production and distribution for Truss CBD USA within Colorado state lines.
Notably, Molson Coors and HEXO already have a similar JV in Canada, which is called Truss Beverages, to produce non-alcohol cannabis-infused beverages for the Canada market. Truss is currently on track of launching its first CBD-infused beverage in Canada later this year. Its initiatives toward the successful launch include the completion of product formulations, branding and construction of a cannabis beverage production facility in Belleville, Ontario.
Price Performance & Zacks Rank
Shares of Molson Coors have lost 17.3% year to date, faring better than the industry’s decline of 28.1%. The company currently has a Zacks Rank #3 (Hold).
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