Tilray Brands - Growth Into Europe & Infused BeveragesEven though Tilray management keep their cards close to their chests when it comes to future plans, listening to Tilrays latest conference call and their calls and interviews for at least the past year, I strongly believe Tilray will and has already started moving well into the Infused Beverages with Premium Craft Breweries & Truss, as well as European markets.
Irwin Simon stated he believes USA is still another 2 years away from a Rescheduling. Tilray has gotten operations and distributions 'In Place' operating while waiting for this ReScheduling. Similar to Europe build out.
Luckily Tilray has Europe 'In Place' from investments made over the past 8 years.
Q2 Truss is being relocated to Tilray's London facilities to build upon the Infused Beverages Brand into Canadian markets and additional future markets.
Latest Remarks:
"We grew international cannabis revenue by 37%, and we are the market leader in medical cannabis across Europe with leading market shares in Germany, Poland, and Luxembourg."
Our combined market share for Q1 when including Tilray, HEXO, and Truss was 13.4%.
"In Q2, we will complete the integration of HEXO from an operational standpoint, which includes centralizing our packaging and logistics into a three-in-one facility, driving further efficiencies. August, we purchased the remaining 57.5% equity ownership of Truss Beverage Company from Molson's Canada. The transaction further strengthens our
No.1 cannabis market share position in Canada with a combined market share of approximately 40% in the THC beverage and positions us at the forefront of the adult-use beverage sector.
Our expanded cannabis portfolio now includes the fastest-growing beverage brands including XMG, Mollo, House of Terpenes, and Little Victory. We believe that THC beverages present a significant opportunity. There are nearly 11 million customers in cannabis for cannabis beverages, and the categories are already roughly $100 million Canadian at retail.
In addition to the category opportunity, transitioning THC beverage production to a London facility will generate further cost savings and synergies.
Turning to international cannabis our leadership position and market share in the medical cannabis category where we currently operate across 21 countries and achieving early mover advantage in new countries as medical legalization advances.
Our best-in-class cultivation facilities in Portugal and Germany where we are one of only three companies in Germany that can cultivate in-country; as well as leveraging our Canadian cannabis facilities and expertise, our medical distribution network led by our integrated Tilray pharma and medical cannabis teams with relationships across 13,000 pharmacies.
From a bottom-line perspective, we are laser-focused on optimizing our European platform
However, there is proposed legislation in Germany for medical cannabis to be declassified as a narcotic. And if the proposed German legislation comes to pass, it may be prescribed as a medicine rather than a narcotic, which is more difficult for healthcare providers to prescribe. This, in turn, would open accessibility to a larger patient population.
our cannabis and distribution segment each represented about 40% of our total revenue mix, while beverage alcohol and wellness represented about 14% and 8%, respectively. These percentages will change with a full quarter of contributions from the HEXO and Truss acquisitions
Canadian medical cannabis decreased slightly due to increased competition from the adult-use market and price compression in the medical cannabis market. Adult-use cannabis increased 22% due to organic growth from our existing brands launching new products, as well as the increased revenue from the acquisition of HEXO and Truss.
International cannabis grew 37% largely because of the expansion into emerging international medical markets.