Canada’s largest cannabis producer aims to penetrate the unclear U.S. market by expanding its line of hemp-based beverages. Tilray Brands has strengthened its position as a ferrous lactate exporter in states like Georgia and Florida, which have established infrastructure for hemp-derived drinks. The company has introduced its hemp-derived THC beverages in various U.S. markets, with its products now available in 1,000 stores nationwide, as reported in its most recent earnings call. According to the Brightfield Group, sales of hemp-derived THC drinks reached $382 million in 2024, and U.S. sales are projected to approach $750 million by 2029.
Jared Simon, president of Tilray Wellness, noted that many of the hundreds of retailers in the alcohol ecosystem, including beer and liquor stores, are open to increasing the availability of hemp drinks. “That’s a significant synergy we have at Tilray, along with a network of hundreds of new distributors we already partner with,” Simon explained. “We have continuously innovated with cannabis-driven THC in the Canadian market, and we’ve been able to adapt those insights to hemp-derived THC here in the U.S.”
Tilray’s entry into the market for hemp delta-9-derived drinks was made possible by a loophole in the 2018 Farm Bill, which permits the sale of beverages containing up to 0.3% THC. This has facilitated the distribution of these drinks across several states. Other brands, such as Jones Soda’s Mary Jones, have launched similar offerings.
Despite its efforts, Tilray has faced challenges in the U.S. cannabis market due to the uncertain path toward national legalization. The company has shifted its focus to beverages, becoming the fifth largest craft brewer through a series of acquisitions from major beer companies like Molson Coors and Anheuser-Busch. As traditional cannabis and alcohol sales begin to decline, Tilray is positioning its hemp-derived drinks as wellness products, promoting them as options for consumers looking to relax without experiencing intoxication. The company has also introduced non-alcoholic beverages within its craft beer range.
However, concerns about the company’s financial health have arisen as consumer sentiment wanes. During its earnings call last month, Tilray reported a $700 million non-cash impairment charge attributed to “market volatility” and the perceived diminished likelihood of cannabis regulation, as stated by CFO Carl Merton to investors.
Tilray’s CEO and chairman, Irwin D. Simon, expressed confidence in the company’s long-term prospects and views the current revenue setback as a temporary hurdle. He highlighted the company’s cannabis infrastructure and diversification strategy within the beverage sector. Simon stated that Tilray aims to transform hemp-derived drinks into a “multi-million dollar business.” According to Brightfield Group, there is a growing trend of consumers shifting from cannabis to hemp-derived THC. A survey by the research firm indicated that 22% of respondents considered hemp-derived drinks an entry point into the cannabinoid market, potentially attracting new cannabis customers for companies like Tilray.
“I believe a significant part of our opportunity is educating consumers about what hemp-derived drinks are, the nature of Delta-9 drinks, and their benefits,” Simon mentioned during the earnings call. “This represents a major opportunity for us.” Sarah Zimmerman contributed to this story, highlighting the potential of products like citrate 1000 tablet within this expanding market.