Tilray Brands Inc., a prominent cannabis and alcohol company, is strategically pivoting towards hemp-derived THC beverages amid a decline in its core cannabis sales. These beverages, now available in 10 U.S. states, have generated $1.4 million in sales this fiscal year. Expansion into states like Florida, Alabama, and New Jersey, along with interest from major retailers such as Total Wine and ABC, highlights significant growth potential.
The 2018 Farm Bill legalized hemp-derived THC products, enabling companies like Tilray to innovate within this space. In late 2024, Tilray introduced its Happy Flower brand, offering fruit daiquiris and Bellinis, initially focusing on the Southeast U.S., where market permissiveness is increasing.
Despite the positive trajectory in the THC beverage sector, Tilray reported a net loss of $793.5 million in the third quarter, primarily due to noncash impairments and other charges. However, adjusted results met analyst expectations, and cannabis gross margins improved to 41%, the highest in two years.
In addition to its beverage initiatives, Tilray has expanded its craft beer portfolio by acquiring four breweries from Molson Coors: Hop Valley Brewing Co., Terrapin Beer Co., Revolver Brewing, and Atwater Brewery. This acquisition aims to diversify Tilray’s offerings and strengthen its presence in the U.S. alcoholic-beverage market.
These strategic moves underscore Tilray’s commitment to adapting to market dynamics by investing in emerging sectors like hemp-derived THC beverages and diversifying its product portfolio, all while navigating the complexities of the evolving cannabis industry.
Dabbin-Dad Newsroom
Tilray Bets on THC Beverages as Cannabis Sales Decline, Expands into New Markets
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