A large part of the issues of importance during 2022 focused on the Crypto Winter. However, analyst Natalie Pace wanted to talk about what has really been happening in the cannabis industry, focusing primarily on Tilray and its constellation of cannabis brands. This company is still considered the global leader in the cannabis market, so analyzing some of its moves is ideal for understanding what its contribution to the space really is.
While it is true that many other companies have made modifications to their experienced leadership team in different areas, it is Tilray that is becoming the diversified liquor brand in the cannabis space. In late 2020, the cannabis firm decided to purchase Sweetwater Brewing (and its popular 420 craft beer) outright. Since then, the company has continued to make significant acquisitions to maintain its dominant position in the industry.
For example, about two months ago, Tilray’s liquor brand was extended with the arrival of Montauk Brewing, which also includes Breckenridge Distillery, Green Flash Brewing, and Alpine Beer. Much of these moves have been focused on the craft beverage space. Needless to say, mergers and acquisitions like these are driving Tilray’s revenues higher by the day.
Management is still clear that it is of utmost importance to continue to buy companies with their own potential for expansion and fiscal management. Tilray CFO Carl Merton says Tilray’s wellness and craft brands are “strong, high-margin businesses.” On the other hand, Tilray CEO Irwin Simon made it clear that SweetWater will be available in 42 US states, including most recently in California, which is the number one beer market in the country.
According to expert Pace, Tilray has all the tools necessary to be a shining star in the industry. However, the legalization (or perception) of countries continues to have a high correlation with the prospects for share price growth in the industry as a whole. Therefore, Pace believes that a great quarter for this company could be overshadowed by tepid industry expectations.