The company, which could achieve $1 billion in revenue this year, is expanding its range of craft beer, cannabis, and non-alcoholic drinks.
Tilray’s growing interest in beverages is fuelling the company’s expansion.
The company experienced 26% net revenue growth over the past year, with cannabis revenue rising by 24%, according to Tilray’s earnings report. Its net sales are expected to be valued between $950 million to $1 billion this year alone.
During Tilray’s earnings call last week, CEO Irwin Simon stated that the company’s focus on beverages is transforming it into a more diversified business with a broader reach into new categories.
“So over the last 5 years, we have built something that’s pretty exciting, a lifestyle company that’s focused on cannabis, which is cannibalising alcohol, of course,” Simon said.
In August last year, Tilray acquired eight beer brands from alcohol giant Anheuser-Busch. The company is now the fifth-largest craft brewer in the US with a 4.5% market share. In June, Tilray introduced a non-alcoholic beer brand called Runner’s High, promoting it as a healthier alternative.
Simon mentioned that the company is concentrating on expanding its portfolio of craft beer and non-alcoholic brands, aiming to capitalise on the lucrative cannabis beverage market once it becomes legal. In the meantime, it is seeking revenue streams in other areas.
“As we look at other categories and what we should expand into, as we go through our strategic plans, we’ve identified what is that lifestyle, what is that lifestyle opportunity for us to bring within the Tilray brands,” Simon said.
Part of this strategy includes the launch of hemp delta 9-derived beverages, which are not derived from the cannabis plant but still contain THC. Simon noted that the formulations of these drinks are “complete” and ready for sale once the company determines the best markets to launch them in. He mentioned that the company could start selling the drinks in Texas and New Jersey.
In an interview with Yahoo! Finance last week, Simon highlighted that cannabis is currently legal for recreational use in 27 states, and that Gen Z and millennials consume it more than alcohol. However, the CEO expressed uncertainty regarding the federal rescheduling of the drug.
“I’m not sure but I guess I’m not optimistic either,” he told the outlet. “Something’s got to happen.”
Xochitl Hinojosa, director of public affairs at the Department of Justice, informed Food Dive in May that the department is interested in changing how the law handles the drug. It aims to reclassify marijuana from a Schedule I substance, akin to heroin, to a Schedule III controlled substance, similar to Tylenol. The department did not specify when this change might occur.