EXCLUSIVE: Tilray CEO Irwin Simon On Why US Cannabis Rescheduling Won't Change A Billion-Dollar Play

Growth Strategies and Profitability - Tilray's Q1 FY25 revenue reached a record $200 million, up 13$250 million in cash and a debt-to-equity ratio of 1.75 [2] - The diversified portfolio, including cannabis, hemp food, beverages, and pharmaceutical distribution, is profitable [2] U.S. Market Entry and Beverage Expansion - Tilray is entering the U.S. market with hemp-derived Delta-9 THC drinks, targeting 17 to 19 states with brands like Happy Flower, 420 Fizz, and Fizzy Jane [3] - The company sees a billion-dollar opportunity in THC-infused beverages, driven by younger consumers shifting away from alcohol [3] - Tilray leverages its existing distribution network, including 700 beer distributors, 10 manufacturing facilities, and over 17,000 accounts [3] - The company is cautious about direct U.S. cannabis market entry, waiting for clearer regulatory frameworks [4] Craft Beer Strategy and Market Focus - Tilray's craft beer portfolio, including SweetWater and Montauk, sells 15 million cases annually across 19 brands [3] - The company is shifting its strategy to focus on core markets, such as Georgia and New York, rather than spreading thinly across multiple states [3] Lifestyle Brands and U.S. Rescheduling - Tilray's success is not dependent on U.S. cannabis rescheduling, as it already has a significant consumer products business in the U.S. [5] - The company positions itself as a lifestyle brand, with a portfolio including non-alcoholic beverages, hemp food, and beer [5] - Tilray plans to continue acquisitions and growth regardless of cannabis reform [5] International Market Challenges and Opportunities - Tilray faces challenges in international markets, such as lost distribution in Israel, but sees growth potential in Germany and other countries with liberalizing medical cannabis regulations [5] - The company holds a 45% market share in Canada's cannabis drinks segment, providing a foundation for international expansion [5] Future Growth: Innovation and Diversification - Tilray's future growth relies on innovation and leveraging its diversified business model, including non-alcoholic and energy drinks like Liquid Love [6] - The company emphasizes the importance of distribution synergies, particularly through beer distributors [6] - Tilray remains confident in its long-term prospects, focusing on strategic growth and profitability [6]