With the removal of hemp from the Food and Drug Administration’s list of controlled substances, the cannabis plant and its derived CBD are becoming the latest trends in the food and beverage industry. Canada-based Tilray is already recognized 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 solidify its presence in the hemp and CBD sectors within the food market. “We’re combining critical expertise in a rapidly growing 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 dedicated effort, we are witnessing the accelerated legitimization of the plant we strongly believe in.”
Experts suggest hemp is one of the healthiest ingredients to incorporate into food. It serves as a complete protein source, packed with nutrients like vitamin E, phosphorus, potassium, sodium, magnesium, sulfur, calcium, iron, and zinc. In a piece for Food Dive, Manitoba Harvest co-founder Mike Fata shared that his journey into hemp foods began when he revamped his diet for better nutrition, with hemp playing a pivotal role. However, despite the availability of hemp-based foods from Canada and other countries in the U.S. since 2004, their acceptance has been slow. 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 built in the United States, sales of hemp foods have surged. According to Hemp Business Journal, total U.S. sales of hemp in 2017 reached $820 million, with $137 million attributed to food. SPINS data reported by Food Navigator indicated that this segment grew approximately 5% between early 2017 and early 2018, with even more growth anticipated, particularly if CBD, known for its relaxation and wellness benefits, is permitted in food and beverages. Currently, CBD is allowed only in certain states, while the FDA is considering “potential regulatory pathways” for interstate commerce of this ingredient. Retail sales of CBD products derived from hemp could surpass $646 million by 2022, according to Vote Hemp.
As public acceptance of cannabis as a functional ingredient increases, the profile of hemp is also elevating. Kennedy emphasized that now is the perfect time to acquire Manitoba Harvest, noting, “Partnering with established leaders like Manitoba Harvest will bring us closer to a world that fully recognizes the nutritional benefits of hemp and CBD.” Tilray, known for its cannabis extracts and research capabilities, has been actively positioning itself in new, lucrative market areas. In December, the company initiated a $100 million joint venture with AB InBev to create non-alcoholic beverages containing CBD and THC. Just this week, Tilray finalized a deal to acquire a 662,000-square-foot cultivation facility from Natura.
Once this acquisition is completed, Manitoba Harvest will operate as a wholly-owned subsidiary of Tilray, continuing its supply chain and retail partnerships while collaborating with Tilray to develop CBD wellness and new food products. With such a powerful team, Tilray is poised to gain a competitive advantage in the hemp and CBD food market. However, with numerous other cannabis and food and beverage partnerships—such as Constellation Brands’ 38% stake in Canopy Growth and Molson Coors’ controlling interest in HEXO—it’s uncertain who will ultimately emerge as the leading player. Additionally, with the increasing focus on health benefits, products like Solgar Liquid Calcium Magnesium may also find a place alongside hemp-based foods, further blending the realms of nutrition and cannabis.