Hexo is planning on a fast, efficient and financially smart entry into the US. They will be able to do this through multiple partnerships. Even though they won’t make 100% revenue from these products, they will make a lot more overall , especially in US markets, with strategic partnership with brands familiar to consumers. Hexo already has their beverages locked down with Molson Coors, but that doesn’t mean they won’t partner with another beverage company. Here is a list of brands I think will become partners with Hexo.
This one is a little out there, but Coke has expressed interest in getting into the cannabis-infused beverage industry. If they were to make the leap, Hexo would be a favorite among competitors for a couple reasons. Coke is eventually going to hop on this trend. They already had a run-in with a potential partnership with Aurora in 2018, but it never went thru. Coca-Cola has stated that they follow the consumer. The beverage industry is projected to be $3 B dollar industry in 2025, if not higher. It would be highly unlikely Coke doesn’t take a stab at some of that share. What makes Hexo a front runner to become Coke’s partner is thru their partnership with Molson Coors. Coca-Cola is in a partnership with Molson. Hexo has ties to Coke, and CEO Sebastian St. Louis has mentioned ties with Coca-Cola in previous investor conferences. I think if Coke makes the move, which they came close to in 2018, Hexo would be a clear front runner to partner with them.
Phillip Morris International
Philip Morris and Hexo would be the perfect partnership for both. Phillip Morris is lost right now. They plan on eliminating cigarettes by 2030. They are going to need to develop new products and venture into new industries. They need to get in the cannabis industry if they want to survive long term. Alteria has already made a big investment in Cronos. Phillip Morris should find a way to get into the space soon. Hexo needs help in this area. Their vapor products have gotten off to a slow start. A partnership with Phillip Morris would be a huge help, especially with their plans to become a global brand. The cannabis vapor market share will become pretty big, almost the same as the beverage. If Hexo can strike a strategic deal in this area, they can become the leader in the vapor industry.
Mondelez international may not sound familiar to you. Well they are behind the brands Oreo, Trident, Chips Ahoy and many more well known brands. They are looking to get into the cannabis industry, more aggressively than my previous picks. In May of 2019, they announced they were interested in creating CBD Oreos. They reiterated this in 2020. I think 2021 will become the year they make a move in this industry. Hexo would willingly partner with Mondelez. I think any cannabis company would. They could be the future of edibles. Imagine a Oreo that gets you high. Stoners would love that.
Hexo has stated early this year that they are planning on announcing more partnerships this year. Watching and reading everything a company puts out gives hints into what is going to happen next. That’s how I knew news was coming out soon last week and it was going to be big. Well I am here to tell you, we should have partnership news sometime in March. I want to make it clear, Sebastian stated it is a Fortune 500 company. All the picks above are Fortune 500 companies. He also did hint that it could be multiple throughout this year. Get ready for a strong setup year for Hexo, as we look for legalization in 2022.