Shares of Tilray Brands (TLRY 5.49%) climbed as much as 10.4% early Wednesday, then settled to trade up 6.4% as of 1:30 p.m. ET after the Canada-based consumer goods company expanded its line of cannabis beverages.
Tilray expands its leadership in cannabis-infused beverages
More specifically in a press release this morning, Tilray unveiled a range of new cannabis-infused beverages, including tropical cream soda, fruit punch, and iced tea varieties from XMG (Canada’s No. 1 cannabis-infused beverage brand), as well as cider, lime, and lager-based options from its Mollo craft brewing brands.
“Tilray’s commitment to innovation and consumer satisfaction is exemplified by our expansive beverage offerings from XMG and Mollo,” stated Tilray Canada President Blair MacNeil. “With the success of recent introductions from other Tilray brands, such as Solei and RIFF, we have firmly positioned ourselves as leaders in the cannabis beverage market.”
What’s next for Tilray investors?
Recall that Tilray’s core cannabis business served as its primary growth driver when the company released quarterly results early last month, with cannabis segment revenue climbing more than 20% year over year to $70 million. That’s also likely to change in future quarters, however, with alcoholic beverage segment sales set to soar, as Tilray only recently closed on its acquisitions of several large beer brands from brewing giant AB InBev in September.
But while Tilray is smart to diversify further into the alcoholic beverage space, today’s announcement shows it’s not resting on its laurels to appease consumers’ thirst for a wider array of cannabis-infused beverage options as well. Coupled with encouraging inflation data out of the U.S. earlier this week that should presumably indicate easing pressure on consumer spending habits, it’s hardly surprising to see Tilray jumping in response.