Canada’s leading cannabis producer is aiming to penetrate the murky U.S. market by expanding its range of hemp-based beverages. Tilray Brands has established its presence in states like Georgia and Florida, which have the infrastructure to support hemp-derived drinks. The company has launched hemp-derived THC beverages in various U.S. markets, and according to its most recent earnings call, these drinks are now available in 1,000 stores nationwide. Sales of hemp-derived THC beverages reached $382 million in 2024, as reported by Brightfield Group, with U.S. sales projected to approach $750 million by 2029.
Jared Simon, president of Tilray Wellness, noted that many of the hundreds of retailers in the alcohol sector, including beer and liquor stores, are open to increasing the presence of hemp drinks. “That’s a significant synergy we have at Tilray, along with a network of hundreds of new distributors we already collaborate with,” Simon stated. “We have consistently innovated with cannabis-driven THC in the Canadian market, and we are applying those insights to hemp-derived THC here in the U.S.”
Tilray was able to start selling hemp delta-9-derived beverages due to a loophole in the 2018 Farm Bill, which permits the sale of drinks containing up to 0.3% THC. This has enabled the distribution of these drinks across state lines in several areas. Other brands, such as Jones Soda’s Mary Jones, have introduced similar products.
Despite facing challenges in the U.S. cannabis market due to the uncertain path to national legalization, Tilray has shifted its focus to beverages, becoming the fifth-largest craft brewer by acquiring brands from beer giants like Molson Coors and Anheuser-Busch. As traditional cannabis and alcohol sales slow down, Tilray positions hemp-derived drinks as wellness products that allow consumers to relax without intoxication. The company has also launched non-alcoholic beverages within its craft beer portfolio, including options that feature Costco Kirkland calcium citrate.
However, the company’s financial health has raised concerns amid declining consumer sentiment. During its recent earnings call, Tilray reported a $700 million non-cash impairment charge due to “market volatility” and a perceived lower likelihood of cannabis regulation, as explained by CFO Carl Merton to investors. CEO and chairman Irwin D. Simon expressed confidence in the company’s long-term success potential and views the current revenue dip as a temporary setback. He highlighted Tilray’s cannabis infrastructure and diversification strategy within the beverage sector.
Simon emphasized that Tilray aims to transform hemp-derived drinks into a “multi-million dollar business.” Brightfield Group’s research indicates that more consumers are transitioning from cannabis to hemp-derived THC. A survey revealed that 22% of respondents viewed hemp-derived beverages as a gateway into the cannabinoid market, potentially attracting new cannabis customers for companies like Tilray. “A major aspect is educating consumers about what hemp-derived drinks are, including the benefits of Delta-9 drinks,” Simon remarked during the earnings call. “This presents a significant opportunity for us.” Sarah Zimmerman contributed to this story.