Turnin’ a new leaf, eh?… Pot titan Tilray rolled up record revenue in Q2. But the ratio of that $$ coming from cannabis dwindled, with weed sales growth slowing to 35%. Meanwhile, Tilray’s craft-beer biz foamed up to fill more of its glass: beverage sales more than doubled, to $47M, drawing closer to Tilray’s $67M in pot revenue. Faced with a patchwork of US state laws and no federal change-of-heart in sight, the Canadian company has diversified its cannabusiness into drinks.
Can-o-beer: In 2022, Tilray bought Montauk Brewing Co. for $35M, and last year it snatched up eight beer brands from Bud owner AB InBev for $85M, including Shock Top and Blue Point. Tilray said it’s now the fifth-largest craft beer co in America.
Waitin’ for the green light… Tilray dominates pot in Canada, one of the few countries where bud is federally legal. But Tilray can’t sell cannabis in the US, where the leaf’s designated an illegal Schedule 1 drug on the federal level (along with heroin). While 24 states have legalized pot for recreational use, pro-marijuana legislation is stalled in DC. However the chips may fall, Tilray looks prepared…
Puffscription: Cannabis might be rescheduled to a less severe category, making it federally legal for medicinal use. Tilray has a medical-cannabis biz.
Double hitter: Tilray said its beer-quisitions could be leveraged to sell THC drinks, and it bought a cannabis-drinks co from Molson Coors Canada this summer.
Spreading your roots is strategic… Tilray has tilled the soil in hopes it’ll thrive in any conditions. It’s even planning on growing fruits and veggies on cannabis-cultivation farms in Canada. But if the US ever does go green, Tilray appears ready. MJBiz Factbook predicts US cannabis sales will grow from $33B last year to $57B in 2028.