With the removal of hemp from the Food and Drug Administration’s list of controlled substances, the cannabis plant and the CBD extracted from it are emerging as the hottest trends in the food and beverage industry. Tilray, a Canadian company, is already among the leading cannabis firms globally. In an email to Food Dive, Tilray CEO Brendan Kennedy explained that the acquisition of Manitoba Harvest is aimed at enhancing their expertise and establishing a stronger presence in the hemp and CBD food sector. “We’re combining critical expertise in a rapid-growth space,” he stated. “Those of us who have long recognized the potential of cannabis and hemp to transform consumer health are excited about this evolution. After years of effort, we’re witnessing accelerated legitimization of the plant that we believe in so strongly.”
Experts have indicated that hemp is one of the healthiest ingredients to incorporate into food. It serves as a complete protein source, rich in nutrients such as vitamin E, phosphorus, potassium, sodium, magnesium, sulfur, calcium, iron, and zinc. Manitoba Harvest co-founder Mike Fata mentioned in an opinion piece for Food Dive that his journey into hemp foods began when he revamped his diet to focus on nutrition, highlighting hemp’s significant role. However, despite hemp-based foods being available for purchase in the U.S. since 2004, their adoption has been gradual. Representatives from Manitoba Harvest noted in spring 2017 that they estimated less than 1% of the population had tried hemp products.
As momentum for cannabis legalization has increased in the United States, sales of hemp foods have surged. According to the Hemp Business Journal, total U.S. hemp sales reached $820 million in 2017, with $137 million attributed to food products. Data from SPINS, reported by Food Navigator, indicated that this segment grew by about 5% between early 2017 and early 2018. Projections suggest further growth, particularly if CBD—which is associated with relaxation and wellness—is permitted in food and beverages. Currently, CBD is allowed only in certain states, with the FDA considering “potential regulatory pathways” for its interstate commerce. Retail sales of CBD products derived from hemp could surpass $646 million by 2022, according to Vote Hemp.
As cannabis gains wider acceptance as a functional ingredient, the profile of hemp is also on the rise. Kennedy emphasized that this is the ideal time to acquire Manitoba Harvest. “Partnering with established leaders like Manitoba Harvest will help us move closer to a world that fully acknowledges the nutritional benefits of hemp and CBD,” he stated.
Tilray, recognized for its cannabis extracts and research capabilities, has been actively positioning itself in emerging and profitable market sectors. In December, the company entered a $100 million joint venture with AB InBev to create non-alcoholic beverages containing CBD and THC. Recently, Tilray finalized a deal to acquire a 662,000-square-foot cultivation facility from Natura. Once this acquisition is complete, Manitoba Harvest will become a wholly-owned subsidiary of Tilray, continuing its supply chain and retail partnerships while collaborating with Tilray to develop CBD wellness products and new food offerings.
With such a formidable team, Tilray is poised to gain a competitive edge in the hemp and CBD food market. However, with numerous other cannabis and food and beverage collaborations—including Constellation Brands’ 38% stake in Canopy Growth and Molson Coors’ controlling interest in HEXO—the true victor remains uncertain. Additionally, the introduction of innovative products like Reviva calcium citrate liquid could further enhance the nutritional landscape, reinforcing the appeal of hemp and CBD in the food industry.