Less than one year after Molson Coors announced to exit Truss USA and the business with cannabiol infused beverages (CBD) in the United States (inside.beer, 17.11.2022), its subsidiary Molson Coors Canada has also sold its 57.5% stake in Truss Beverage Co, Canada.
Buyer is Tilray Brands, a cannabis-lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America. Tilray Brands closed in June its acquisition of Canadian cannabis producer Hexo Corp., thus giving it access to Hexo’s joint venture with Molson Coors, Truss Beverage Co. The acquisition created what Tilray described as “Canada’s largest cannabis company by revenue.” (inside.beer, 23.6.2023)
Tilray has recently expanded its product offerings and emerged as a prominent player in the consolidation of the US craft beer industry.
Less than two weeks ago, the company acquired eight beer and beverage brands from Anheuser-Busch, propelling Tilray to the position of the 5th largest craft beer business in the U.S. (inside.beer, 7.8.2023)
Among its other notable acquisitions, Tilray purchased Montauk Brewing, the leading craft brewer in Metro New York, in November 2022. (inside.beer, 7.11.2022)
Additionally, Tilray incorporated SweetWater Brewing Company, the 10th largest U.S. craft brewer with distribution across over 40 states, into its portfolio following the acquisition of Aphria, another prominent Canadian cannabis company, in December 2020. (inside.beer, 4.11.2020)
The newly announced acquisition of Truss Beverage Co. reinforces Tilray's strategic move into the cannabis-infused beverage market, particularly in the emerging THC beverages segment. These beverages are positioned to engage legal-aged consumers who are yet to explore cannabis as a lifestyle, medical, or functional choice.
In Canada, with a potential consumer base of over 10.6 million, the market for cannabis beverages is estimated to be nearly CAD 100 million at retail. The evolving regulatory landscape is anticipated to pave the way for cannabis-infused beverages, including the possibility of THC options on tap in restaurants and bars, further propelling growth in this sector.
Blair MacNeil, President of Tilray Canada, expressed enthusiasm for the acquisition, highlighting how it bolsters Tilray's position in the cannabis market. "This acquisition further strengthens Tilray’s #1 cannabis market share position in Canada and positions the company at the forefront of the adult-use beverage sector. We are excited to build upon our leading portfolio of beloved cannabis brands and to further diversify our product offerings while broadening our consumer reach and enhancing consumer’s lives."
Beyond the cannabis sector, the acquisition aligns with the growth potential of functional beverages that incorporate THC and other minor cannabinoids. These elements offer various benefits and opportunities to enhance the lives of adults.
With a combined pro-forma market share of approximately 36% in cannabis-infused beverages, Tilray substantially broadens its consumer base and leading market share position. Among the brands now under Tilray's umbrella are XMG, Mollo, House of Terpenes, and Little Victory. These brands, including Truss, will contribute to a diverse lineup of cannabis-infused beverages available to consumers.
