Tilray Brands' CEO Explains Why Beer Is Such a Big Part of the Company's Long-Term Strategy
Cannabis producer Tilray Brands (NASDAQ: TLRY) has been busy with acquisitions in the past year. In particular, it has been loading up on beer companies and brands. It now has a 5% market share in the U.S. craft beer industry. While it may seem like the business is looking to diversify its operations, there's more to it than that. For CEO Irwin Simon, it's also about setting up the company for growth down the road and using these acquisitions to help the cannabis business as well.
By acquiring beverage companies, Tilray can expand its capabilities for making cannabis-infused beverages. In an interview with BNN Bloomberg, Simon said, "one day, we will infuse these drinks with THC, with CBD, but we'll have the distribution and we'll have the brands when and if legalization does happen." Tetrahydrocannabinol (THC) refers to the psychoactive substance in cannabis that gives consumers a high, while cannabidiol (CBD) is associated with medical marijuana and the health benefits of cannabis.
The market for cannabis-infused beverages is an intriguing one because while it is growing at a fast rate, it's also incredibly small right now. According to estimates from Fortune Business Insights, the global market for cannabis-infused beverages was worth just $915 million in 2021. Analysts expect, however, that it will expand at a compound annual growth rate of more than 54% and be worth more than $19 billion by 2028.
Source Fool.com
