RE:RE:Tilray will become the fifth-largest craft brewer in U.S. Ventura, even though Premium alcoholic beverages will certainly produce nice returns, I believe Tilray is looking well past that stage and into the Cannabis Infused Beverage market, etc. Jan 26, 2023 – Carl Merton - "When federal cannabis legalization does occur in the U.S., we will leverage our U.S. brands and businesses, including a broad set of cannabis-lifestyle CPG brands, and their distribution and marketing network to enter markets and capture opportunities".
Just in the past 3 weeks, since the Aug 7th Breweries announcement:
"Tilray Brands is expanding its footprint in alcoholic and cannabis beverages, buying up brands from Molson Coors and Anheuser-Busch as legal restrictions hamper the marijuana industry.
The major cannabis company announced Friday it will acquire the remaining 57.5% equity ownership of cannabis-infused drinks maker Truss Beverage from Molson Coors Canada. The transaction price was not disclosed. The Truss acquisition is a part of a larger “diversification strategy” underway at Tilray. As growth in the North American cannabis industry stalls, weed-focused companies aim to expand their portfolios.
THC beverages and craft beer are among the fast-growing beverage sectors that have caught the interest of cannabis executives.
Tilray said the deal to buy the remainder of Truss makes it the leader in adult-use cannabis beverages in Canada, with a combined market share of about 36%.
A lot of people in the cannabis industry still don't understand why cannabis beverages are going to be the pre-dominant form of cannabis consumption in the long-term. Beverages are now only 1-2% of dispensary revenue. Thats where the Future Growth will be coming from.
They are setting themselves up to gain a strong position in the Cannabis Infused Beverage markets.
The Fluent Brand split-up in January 2022 with AB InBev, that kept the Fluent brand, Tilray kept the manufacturing equipment related to the production of CBD and THC beverages, the rights to co-pack for Fluent, along with a global license to use the technology developed by the joint venture. Despite the end of the partnership, Tilray indicated their commitment to the cannabis beverage industry and their intention to introduce new products in the future.
With the Aug 7th purchase of Long Island's Blue Point Brewery, Irwin Simon announced that Long Island Montauk would be working with the much larger Blue Point, saving thru out their markets which Montauk has also just expanded into the Bahamas and further into the NE US.
"TLRY offers investors a uniquely positioned, diverse company. After Anheuser-Busch (BUD) saw sales plunge after receiving backlash for featuring trans activist Dylan Mulvaney, TLRY bought eight beer brands from the beer giant. Tilray is not only one of the largest marijuana companies, it is also now the fifth-largest craft brewer in the United States.
TLRY shares earn the best possible Zacks Growth Style Score of A."
It's easy to see Tilray building its distribution network that will be ripe for leveraging across North America post US legalization.
From Forbes:
"reclassification would be a massive step forward, validating the medicinal benefits of marijuana.
"The move will also allow for interstate commerce while removing the draconian effects of section 280E of the tax code,"
"The news further triggered a positive response in the marijuana stock market, resulting in significant double-digit jumps for major players. In fact, Federal relaxation of marijuana classification could potentially enable major stock exchanges to list marijuana-related businesses and open doors for foreign companies to sell products in the United States."
Unfortuneately we will still run into old bar tenders that want to argue Premium Alcoholic Beverages are a thing of the past, and Tilray made a bad investment. If those folks thought about the possibilties that are developing they may stop making that stupid remark "Just Like I said'.