Truss, our joint venture with HEXO in Canada, began rolling out its range of THC and CBD infused beverages across the Canadian market during the third quarter of 2020. Separately, in April 2020, we completed the formation of a new joint venture with HEXO to explore opportunities for non- alcohol hemp-derived CBD beverages in Colorado. 

## Foreign currency impact on results 

During 2020, foreign currency movements unfavorably impacted our North America USD income before income taxes by $0.3 million. Included in this amount are both translational and transactional impacts of changes in foreign exchange rates. The impact of transactional foreign currency gains and losses is recorded within other income (expense) in our consolidated statements of operations. 

## Volume and net sales 

Brand volume decreased 5.1% in 2020 compared to 2019, due to on-premise outlet restrictions as well as packaging constraints contributing to the declines in the economy and premium segments. Financial volume declined 6.0% in 2020 compared to 2019, reflecting lower brand volume, unfavorable shipment timing in the U.S. largely due to aluminum can supply and other packaging material constraints as well as lower contract brewing volume. 

Net sales per hectoliter on a brand volume basis increased 1.6% in local currency in 2020 compared to 2019, driven by positive brand and package mix in the U.S. as well as net pricing increases in the U.S. and Canada, partially offset by negative channel and brand mix in Canada attributed to the shift of volume from on-premise to off-premise and the estimated keg sales returns and reimbursements recognized in the first quarter of 2020 related to the on-premise impacts of the coronavirus pandemic. Net sales per hectoliter on a reported basis in local currency increased 1.9% in 2020 compared to 2019. 

## Cost of goods sold 

Cost of goods sold per hectoliter in local currency increased 3.9% in 2020 compared to prior year, impacted by finished goods obsolescence charges and related costs primarily recognized in the first quarter of 2020 resulting from the on-premise impacts of the coronavirus pandemic as well as temporary "thank you" pay for certain essential North America brewery employees, partially offset by cost savings and the favorable resolution of our property tax appeal for our Golden, Colorado brewery. 

## Marketing, general and administrative expenses 

Marketing, general and administrative expenses in local currency decreased 9.4% in 2020 compared to 2019 primarily driven by lower marketing spend in areas impacted by the coronavirus pandemic, such as sports and live entertainment events, and other cost mitigation actions, as well as cost savings related to the revitalization plan, partially offset by cycling lower incentive compensation and a non-recurring vendor benefit in the prior year. 

## Other income (expense), net 

Other income was $1.7 million in 2020 compared to other expense of $11.4 million in 2019 primarily driven by unrealized mark-to-market changes on our HEXO warrants, partially offset by a $1.5 million gain recognized in 2019 on the sale of the Company's ownership interest in the Montreal Canadiens. 

