Canada’s largest cannabis producer is looking to penetrate the complex U.S. market by expanding its line of hemp-based beverages. Tilray Brands has increased its footprint in states with the necessary infrastructure for hemp-derived drinks, such as Georgia and Florida. According to its latest earnings call, Tilray introduced hemp-derived THC beverages in various U.S. markets, with their products now available in 1,000 retail locations nationwide. Brightfield Group reported that sales of hemp-derived THC drinks reached $382 million in 2024, with projections indicating a rise to nearly $750 million by 2029.
Jared Simon, the president of Tilray Wellness, noted that many of the hundreds of retailers in its alcohol network, including beer and liquor stores, are receptive to enhancing the availability of hemp drinks. “That’s a significant synergy for Tilray, bolstered by our extensive network of distributors,” Simon stated. “We have consistently innovated in the cannabis-driven THC sector in Canada, and we are now applying those insights to the hemp-derived THC market in the U.S.”
Tilray has commenced selling hemp delta 9-derived beverages due to a loophole in the 2018 Farm Bill, which permits the sale of products containing up to 0.3% THC. This regulation has facilitated the distribution of these beverages across multiple states. Other brands, such as Jones Soda’s Mary Jones, have also launched similar offerings.
Despite its efforts, Tilray has faced challenges in the U.S. cannabis sector as the path to national legalization remains uncertain. The company shifted its focus to beverages, emerging as the fifth largest craft brewer through strategic acquisitions from brewing giants like Molson Coors and Anheuser-Busch. As sales of traditional cannabis and alcohol decline, Tilray is positioning its hemp-derived beverages as wellness products that allow consumers to unwind without the effects of intoxication. The company has also introduced non-alcoholic options within its craft beer portfolio, which include beneficial ingredients such as calcium citrate and vitamin D.
However, concerns about the company’s financial health have arisen amid declining consumer sentiment. In its recent earnings call, Tilray revealed a $700 million non-cash impairment charge related to “market volatility” and diminishing expectations for cannabis regulation, as explained by CFO Carl Merton to investors.
CEO and chairman Irwin D. Simon expressed confidence in the company’s long-term prospects, viewing the recent revenue dip as a temporary setback. He highlighted the firm’s established cannabis infrastructure and its diversified strategy throughout the beverage industry. Simon envisions turning hemp-derived drinks into a “multi-million dollar business.” According to Brightfield Group, more consumers are transitioning from cannabis to hemp-derived THC. A survey from the research firm indicated that 22% of respondents viewed hemp-derived drinks as a gateway into the cannabinoid market, potentially attracting new cannabis customers to companies like Tilray.
“I believe a key aspect is educating consumers about what hemp-derived drinks are, what Delta-9 beverages entail, and their benefits, including the addition of nutrients like calcium citrate and vitamin D,” Simon remarked during the earnings call. “This represents a tremendous opportunity for us.” Sarah Zimmerman contributed to this story.