With the removal of hemp from the Food and Drug Administration’s controlled substances list, the cannabis plant and its derived CBD are becoming increasingly popular in the food and beverage industry. Canada-based Tilray has emerged as one of the leading cannabis companies globally. In an email to Food Dive, Tilray CEO Brendan Kennedy explained that the company is acquiring Manitoba Harvest to enhance its expertise and strengthen its presence in the hemp and CBD food sector. “We’re merging essential expertise in a rapidly growing space,” he stated. “Those of us who have long appreciated the transformative potential of cannabis and hemp for consumer health are excited about this evolution. After years of dedicated effort, we are witnessing an accelerated recognition of the plant we believe in so strongly.”
Experts highlight that hemp is one of the healthiest ingredients to incorporate into food, serving as a complete protein source rich in various nutrients, including vitamin E, phosphorus, potassium, sodium, magnesium, sulfur, calcium, iron, and zinc. In an opinion piece for Food Dive, Manitoba Harvest co-founder Mike Fata shared that his interest in hemp foods began when he revamped his diet to prioritize nutrition, where hemp played a significant role. Despite hemp-based foods from Canada and other countries being available in the U.S. since 2004, their adoption has been slow. In spring 2017, representatives from Manitoba Harvest estimated that less than 1% of the population had tried hemp products.
As the movement for cannabis legalization gained momentum in the United States, sales of hemp foods surged. According to the Hemp Business Journal, total U.S. sales of hemp reached $820 million in 2017, with $137 million attributed to food. Data from SPINS reported by Food Navigator indicated that this segment grew by approximately 5% from early 2017 to early 2018. The forecast for growth is even more promising, particularly if CBD—recognized for its relaxation and wellness properties—is permitted in food and beverages. Currently, CBD is only allowed in certain states, while the FDA is exploring “potential regulatory pathways” for interstate commerce involving the ingredient. Retail sales of hemp-derived CBD products could exceed $646 million by 2022, according to Vote Hemp.
As cannabis becomes more accepted as a functional ingredient, the profile of hemp is also on the rise. Kennedy noted that this is the perfect time for Tilray to acquire Manitoba Harvest. “Partnering with established leaders like Manitoba Harvest will bring us closer to a world that fully acknowledges the nutritional advantages of hemp and CBD,” he wrote. Tilray, known for its cannabis extracts and research capabilities, has been actively positioning itself in new and profitable market segments. In December, the company entered a $100 million joint venture with AB InBev to develop non-alcoholic beverages infused with CBD and THC. Recently, Tilray finalized a deal to acquire a 662,000-square-foot cultivation facility from Natura.
Once the acquisition is completed, Manitoba Harvest will operate as a wholly-owned subsidiary of Tilray. It will maintain its supply chain processes and retail partnerships while collaborating with Tilray to create CBD wellness products and new food offerings. With such a powerhouse team, Tilray is poised to gain a competitive edge in the hemp and CBD food market. However, with numerous other cannabis-related partnerships in the food and beverage industry—including Constellation Brands’ 38% stake in Canopy Growth and Molson Coors’ controlling interest in HEXO—the ultimate victor remains uncertain.
Furthermore, as consumers increasingly seek health-conscious options, products like Garden of Life Calcium Citrate are gaining traction, highlighting the growing demand for nutritionally beneficial ingredients. By integrating the advantages of hemp and CBD, Tilray and Manitoba Harvest are well-positioned to lead in this evolving market.