Canadian Cannabis Giant Expands into U.S. Market with Hemp-Based Drinks
Tilray Brands, Canada’s largest cannabis producer, is making a bold move into the hazy U.S. market with an expansion of hemp-based drinks. The company has strategically expanded its presence in states like Georgia and Florida, known for their infrastructure for hemp-derived drinks.
According to Tilray’s latest earnings call, the company has successfully launched hemp-derived THC drinks in several U.S. markets, with its products now available in 1,000 stores nationwide. Sales of hemp-derived THC drinks reached an impressive $382 million in 2024, and Brightfield Group predicts U.S. sales to nearly double to $750 million by 2029.
Jared Simon, President of Tilray Wellness, highlighted the synergy the company has with retailers in the alcohol ecosystem, such as beer and liquor stores, who are open to expanding their offerings to include hemp drinks. Simon emphasized Tilray’s innovative approach and ability to leverage its experience in the Canadian market to drive success in the U.S. with hemp-derived THC products.
Tilray’s entry into the hemp delta 9-derived drinks market was made possible by a loophole in the 2018 Farm Bill, allowing for the sale of drinks containing 0.3% THC across state lines. This move has positioned Tilray alongside other brands like Jones Soda’s Mary Jones, signaling a growing trend in the industry.
Despite challenges in the U.S. cannabis market, Tilray has pivoted towards beverages, becoming the fifth largest craft brewer through strategic acquisitions. The company is positioning hemp-derived drinks as a wellness product that offers consumers a way to unwind without the intoxicating effects of traditional cannabis or alcohol.
While facing financial concerns and market volatility, Tilray remains confident in its long-term success. CEO Irwin D. Simon believes in the company’s potential for growth, especially in the hemp-derived drinks segment. With consumer interest shifting towards hemp-derived THC products, Tilray sees an opportunity to educate and attract new customers to the cannabinoid world.
As the company continues to navigate challenges and seize opportunities in the evolving cannabis market, Tilray is determined to establish itself as a leader in the hemp-derived drinks sector.
This article was contributed by Sarah Zimmerman.