Tilray’s Irwin Simon On Building A Diversified Cannabis And Alcohol Company
October 22, 2024Last week, cannabis and beverage alcohol group Tilray reported $200 million in net revenue for its fiscal first quarter through August, a 12% jump year-over-year. The growth comes as the company finds expanding audiences for both its cannabis brands in Canada and its American craft beer and spirits labels. Late last month, Tilray CEO and chairman Irwin Simon spoke at the 48th Annual Impact Marketing Seminar, presenting Tilray to the assembled drinks executives as a player to watch in the consumer packaged goods industry.
“Tilray today is approaching a billion dollars in sales. We have five distinct businesses. We have adult-use cannabis, we have our medical cannabis business, we have our beverage business, our spirits business, and our wellness business,” says Simon. “We have 44 brands. We have over 2,700 employees. We sell today in 20 different countries around the world.”
While Tilray has no plans to enter the regulated, dispensary cannabis market in the U.S. until cannabis is federally legalized, the company has announced its expansion into hemp-derived THC drinks, where it can leverage beverage alcohol distribution channels. The portfolio includes 420 Fizz, Herb & Bloom, Fizzy Jane’s, and Happy Flower. “(Hemp THC) is legal in 17 states. It’s permitted with restrictions in 10 states. There are 14 states where it is absolutely prohibited and there’s certain states out there that are silent,” he says, acknowledging the patchwork of state laws regulating the new category. “A lot of exciting things are happening within Tilray. A lot of new innovation, a lot of new products.”
In the U.S., Tilray has focused on acquiring beverage alcohol companies to bolster its distribution footprint around the country. Starting with the acquisition of Sweetwater Brewing in Georgia, Tilray has assembled a craft portfolio, buying brands from AB InBev, like Shock Top and Breckenridge, and from Molson Coors, like Terrapin and Atwater. “We’ll sell over 15 million cases of beer,” Simon says. “That is acquisitions, innovation, new distribution.” He adds that partnerships with universities and Major League Baseball are helping to drive growth for the company’s beverage portfolio.
In Canada, where Tilray is a leading cannabis player, cannabis beverages are an area of interest for consumers, but flower is still the leading category. “We sell 6 million cans of drinks in Canada,” he says. “We produce 328 metric tons of flower.” He adds that Tilray produces 80 million pre-rolls, another booming cannabis category. According to Simon, beverage alcohol is down in Canada while cannabis is growing, citing a 2.2% decline in alcohol and a 23.4% gain in cannabis sales. Tilray’s Canadian portfolio includes brands like Good Supply, Chowie Wowie Chocolates, Broken Coast, and Redecan, among others.
Moving forward, Simon says Tilray will continue to leverage its position at the convergence of the cannabis, wellness, and beverage categories to create a diversified footprint, paving the way for the company to enter the U.S. cannabis market from an advantaged position once the category is legalized.—Shane English
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