The acquisition positions Tilray as the leader in adult-use cannabis beverages in Canada, with a market share of around 36%. Its expanded cannabis portfolio now includes the fastest-growing beverage brands including XMG, Mollo, House of Terpenes, and Little Victory (which contain THC and CBD in varying proportions).
Truss Beverage Co was formed in 2020 as a company ‘crafting a new space at the intersection of the beverage world and the cannabis frontier’.
'We expect a regulatory shift to fuel strong growth'
Tilray says THC beverages present a ‘significant opportunity’ to engage legal-aged consumers who haven’t already explored cannabis as a lifestyle, medical, or functional choice. Anticipating an ease in regulations, it wants to be at the forefront of the market.
“In Canada, with over 10.6 million potential consumers remaining untapped, cannabis beverages are almost $100MM at retail,” says Tilray.
“Regulatory shifts are expected to facilitate market entry for beverages, with the possibility of on-tap THC options in restaurants and bars promising substantial growth for this category. Over time, we expect the regulatory landscape for beverage distribution to evolve, with authorities re-evaluating their consumer policies. We expect this shift to fuel strong growth in the market for cannabinoid-based beverages, catering to diverse needs and occasions.
“Beyond the cannabis industry, functional beverages represent significant growth. These beverages offer consumers the functional advantages of THC and the diverse range of minor cannabinoids. These elements provide many benefits and other opportunities that enhance the lives of adults.”
Furthermore, with portfolio boasting a comprehensive range, Tilray believes this will help retailers navigate the evolving landscape of products.
Truss Beverage Co was formed by Molson Coors Canada and Hexo Corp, with Tilray Brands acquiring Hexo Corp in June this year.
Meanwhile, Tilray has also acquired eight beer and craft beverage brands from AB InBev this month.
Molson Coors had already exited its CBD beverage business in the US at the end of last year: citing regulatory uncertainty in the US market and consequently hesitation from retailers and distributors to accept brands.