Tilray has been on a spree since its recent earnings beat.
In a statement, Blair MacNeil, President of Tilray Canada, expressed excitement for the move.
“In addition to acquiring full and direct ownership of a stable of high-growth brands, this acquisition further strengthens Tilray’s No. 1 cannabis market share position in Canada and positions the company at the forefront of the adult-use beverage sector,” MacNeil said.
He emphasized the company’s intent to expand its product offerings and cast a wider net to engage more consumers.
With a potential untapped Canadian consumer base of over 10.6 million and a retail worth of nearly $100 million for cannabis beverages, Tilray said, the acquisition positions the company to take advantage of bubbling interest for the category.
“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,” the company said in a statement.
The company added that its looking to tap into shifting consumer preferences towards beverages that offer functional benefits.
The deal also reinforces the company’s piece in the Canadian market. Its combined pro-forma market share now stands at 36%. Among its expanded beverage portfolio are brands such as XMG, Mollo, House of Terpenes, and Little Victory.
Additionally, the company said that more deals help streamline sales and distribution processes for retailers, allowing them to address a large portion of their business needs with Tilray’s wide product range.
Tilray has managed to turn its fortune around lately. The company beat revenue estimates by $30 million last month and shored up more ethanol stakes from Anheuser-Busch (NYSE: BUD) in an $85 million all-cash deal.
The company’s been looking to extend beyond its core cannabis division and leverage its expertise in the consumer packaged goods sector. That would help it become a diversified CPG player with revenue streams that insulate the business against fluctuations in the cannabis markets.
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