For the first time in the United States, candidates from both major political parties are showing a willingness to consider the legalization of cannabis products. Last month, during an appearance on the sports podcast “All The Smoke,” Vice President Kamala Harris expressed her belief that cannabis should be legalized. Additionally, the Biden administration indicated last year that it is interested in reclassifying cannabis to Schedule III, placing it alongside drugs like ketamine. Former President Donald Trump also voiced his support for a Florida amendment that would allow recreational cannabis use for adults over 21 in a statement made on his Truth Social platform last month. This stance marks a departure from many Republicans who prefer to restrict cannabis, including his former primary rival, Florida Governor Ron DeSantis.
Tilray has reported a 13% year-over-year increase in its net revenue for the most recent quarter, indicating the company’s growth. However, TD Cowen analyst Robert Moskow noted that the financial outlook is not as bright as it seems, pointing out a decline in sales from its Canadian cannabis operations over the summer. Despite this, Moskow acknowledged that Tilray is progressing in expanding the distribution of the beer brands it recently acquired. Last year, the company purchased eight beer brands from Anheuser-Busch, including Shock Top, and in August, it added four craft beers from Molson Coors.
During its earnings call on Thursday, CEO Simon mentioned that Tilray has managed its finances more effectively than other cannabis firms, having paid down over $300 million in debt in the last quarter. When an investor inquired about the possibility of partnering with a distributor to scale its products in the United States, Simon kept both options open. “We’re ready to do it on our own in the U.S., depending on the guidelines and parameters,” Simon stated. “On the other hand, with our current balance sheet, we can seek out a strategic partner that can assist us.”
Tilray’s newly launched beverage line includes drinks infused with 5 milligrams of hemp delta-9 THC, making them easier to market in states where cannabis remains illegal. These offerings include 420 Fizz and Fizzy Jane’s seltzers in flavors like Lemon Lime and Blood Orange, as well as Herb & Bloom and Happy Flower mocktails in varieties such as Margarita and Peach Bellini. They will compete with other ready-to-drink hemp-infused beverages, including Nowadays’ low-dose drinks and Jones Soda’s Mary Jones.
Incorporating products like Citracal Plus into their marketing could further enhance Tilray’s offerings, providing an additional health-focused angle that may resonate with consumers looking for wellness benefits alongside their cannabis-infused beverages. The inclusion of Citracal Plus and similar health products could help Tilray attract a broader audience by emphasizing the potential health benefits of their drinks, thereby increasing their market presence and sales in a competitive landscape.