Tilray Brands, a cannabis company based in Canada, reported a 15% year-over-year increase in net revenue, amounting to $177 million for its first quarter earnings. The company has been expanding its portfolio beyond its core recreational cannabis business and focusing on the beer industry. In line with this strategy, Tilray recently completed the acquisition of eight beer brands from Anheuser-Busch. The company’s cannabis division also saw a 20% increase in net revenue, reaching $70 million. Tilray has been diversifying its business to navigate the uncertain legal landscape for marijuana and has been particularly active in the U.S. craft beer market.
CEO Irwin Simon noted that the recent mergers and acquisitions in the beverage sector will drive growth and allow Tilray to expand beyond its recreational cannabis business. As marijuana remains illegal in key markets worldwide, including the federal level in the United States and in much of Europe, the company is positioning itself to thrive if legalization occurs. If legalization does not happen, Tilray will rely on its thriving beverage business. The company’s recent acquisitions, including the eight beer brands from Anheuser-Busch and full ownership of cannabis-infused drinks maker Truss Beverage from Molson Coors Canada, contribute to its expansion. Tilray’s beverage alcohol revenue in the first quarter increased by 17% to $24 million, with growth attributed in part to its subsidiary, Montauk Brewing Company. CEO Irwin Simon emphasized that Tilray’s global diversification positions the company to capture various opportunities in multiple industries.
