As the share price of Tilray Brands closes seven per cent higher on the Toronto Stock Exchange on Tuesday, the company’s chief executive officer says an international appetite for cannabis and THC-infused beverages is helping profits grow more than previously expected.
“We really had a good quarter in our cannabis business in the Canadian market,” said Tilray Brands Chair and CEO Irwin Simon, during an interview with BNN Bloomberg on Tuesday. “We had a good quarter in our European cannabis market.”
Although widely considered a cannabis company, Simon says sales in the craft beer segment were larger than anticipated.
“One of the big things I made a bet on in 2020 was to go into the beverage business,” he explained. “And at that time we acquired SweetWater Brewing Company, which was doing about two million cases.”
Tilyray has since acquired numerous other beverage companies, including Montauk Brewing Company, Alpine Beer Company and Green Flash Brewing Company.
“We put a lot of energy into innovation. We put a lot of energy into distribution. And it’s paying off,” he said.
Simon sees growing potential in THC-infused drinks.
“We have 40 per cent of the market share in Canada today, and THC-infused drinks are some great products. So there is a big market here for it. And if rescheduling happened in the U.S. tomorrow, and I could sell medical cannabis in the U.S. with the growth facilities we have today…just imagine what I could do in the U.S. market,” he said.
Without new regulations coming into place, he said, “I got to focus on other categories. And that’s beers, spirits, wellness, and who knows what else from a lifestyle standpoint that Tilray should enter into.”
To watch the rest of Simon’s interview with BNN Bloomberg, click the video above.