2 Cannabis Stocks That Have Turned to Alcohol for Growth
Cannabis companies have been struggling to generate growth in recent years. The pot market isn't opening up (federally) in the U.S. anytime soon, and in Canada, there's an excess of competition, making it difficult for top companies to dominate and grow. One product Canadian pot producers have been turning to is alcohol. Two companies that have made that a key part of their growth strategies are Tilray Brands (NASDAQ: TLRY) and SNDL (NASDAQ: SNDL).
Tilray Brands is one of the leading cannabis companies in Canada, and it has been able to find ways to expand its top line through acquisitions. In particular, it has been acquiring alcohol companies to extend its presence in the U.S. while also diversifying its overall operations.
In its most recent fiscal year, which ended on May 31, the company's cannabis sales totaled $220 million and were down 7% year over year. Distribution sales were down, as was revenue from its wellness business. The one positive was its beverage and alcohol segment, where revenue of $95.1 million was up by 33%. Multiple craft beverage brands have been the key to its success, including SweetWater Brewing, Breckenridge Distillery, and Montauk Brewing.
Source Fool.com
