Key Points:
- Tilray’s CEO and chairman, Irwin D. Simon, is optimistic about potential changes in cannabis regulation following the U.S. presidential election.
- The company is launching four hemp-derived THC drinks through its Tilray Alternative Beverages unit in key U.S. markets this month.
- Cannabis beverage producers are hopeful about a shift in political support for their industry in the U.S.
Insight:
Both major party candidates in the U.S. are showing openness to legalizing cannabis products for the first time.
Vice President Kamala Harris recently expressed support for legalization, while the Biden administration has signaled interest in reclassifying cannabis to Schedule III.
Former President Donald Trump also voiced support for legalizing recreational cannabis in Florida, diverging from many fellow Republicans on the issue.
Tilray reported a 13% increase in net revenue year-over-year, despite challenges in its Canadian cannabis business.
The company is making progress in expanding distribution of beer brands it acquired, including Shock Top and craft beers from Molson Coors.
CEO Irwin D. Simon highlighted Tilray’s financial management, including paying down over $300 million in debt in the last quarter.
The company’s new THC drinks, infused with 5 milligrams of hemp delta 9 THC, offer a unique product line for states where cannabis is still illegal.
These drinks, such as 420 Fizz and Herb & Bloom mocktails, will compete with other hemp-infused beverages on the market.