THC Drinks Aren't The New Beer, They're Something Else, Says Tilray

As beer consumption dips and consumers search for lighter ways to unwind, hemp-derived THC beverages are carving out a serious niche in the U.S. market. For Tilray Brands Inc. TLRY, one of the world's largest cannabis companies and a top craft beer player in the U.S., the rise of weed drinks isn't just a trend; it's a business strategy.

"We believe hemp beverages are just one more choice for adults looking to relax and unwind," Sam Garfinkel, senior vice president of commercial operations and strategy for Tilray Wellness, told Benzinga. "That concept shapes everything from formula development to our retailer strategy."

Tilray's Craft Beer Advantage

Tilray's deep bench in the alcohol world, including ownership of brands like SweetWater, Shock Top and Blue Point, is more than a diversification play. It gives the company a distribution and R&D infrastructure few cannabis brands can match.

"We're fortunate to have a vast network of distributors, wholesalers, legal/regulatory experts, and food scientists," said Garfinkel. "That helps us get to market with breakthrough brands like Happy Flower and Fizzy Jane."

Formulation Challenges And Flavor Opportunities

Unlike alcohol, low-dose THC doesn't bring much flavor of its own, but Tilray sees that as a creative opportunity.

"Herbal ingredients actually complement the subtle hemp flavor nicely," Garfinkel noted. "We've just begun playing with that idea, and are excited for consumers to try our new Happy Flower Mojito this summer."

Scaling Consistency And Safety

Cannabis beverage brands often struggle with consistency and flavor stability, especially at a national scale. Tilray believes its infrastructure gives it an edge.

"One of our greatest capabilities is our extensive quality, testing and regulatory infrastructure," Garfinkel said. "While we're nimble enough to innovate quickly, we still have all the protocols and standards of a much larger organization."

Segmenting Like The Alcohol World

Rather than treat all THC drinkers the same, Tilray's beverage pipeline mirrors the segmentation strategies long used in the beer and wine markets.

"Some consumers are looking for a full-flavor cocktail-style beverage, which we address through our Happy Flower brand, while others are more focused on calories, which we deliver on with Fizzy Jane," said Garfinkel. "We're really just scratching the surface, but our focus will be on driving category incrementality as we address different segments of the market."

THC Drinks As The Fourth Pillar

Instead of replacing alcohol, Tilray sees hemp-derived THC drinks as something new entirely.

"Our research indicates that THC Beverage is highly incremental to beer, wine and spirits consumption," Garfinkel explained. "It presents an exciting opportunity for Tilray to develop an emerging category while still innovating for our craft beer and spirits consumers. We believe that THC Beverage will be a new pillar of adult beverage consumption over time."

The Competition: Big Tobacco Enters The Chat

While Tilray leans on alcohol expertise, companies like Organigram Holdings Inc. OGI, backed by British American Tobacco BTI, are also entering the U.S. THC beverage market. Organigram has done so via its Collective Project brand, now sold in 10 states.

Asked about the competitive landscape, Garfinkel highlighted Tilray's ability to bridge all sides of the industry.

"With expertise in cannabis, BevAlc and hemp-based food and beverages, Tilray has a right to win in the hemp-derived Delta-9 THC beverage category," he said. "It is a competitive landscape, but Tilray's unique infrastructure and portfolio was crafted to take advantage of this very moment."

He added that Tilray is working with organizations like the Coalition for Adult Beverage Alternatives (CABA) to help create safety and quality standards for the entire category.

Looking Ahead

With recent data showing alcohol sales declining in regions that legalized cannabis and 60% of consumers now reporting they use cannabis to reduce alcohol intake, Tilray's push into hemp-derived THC drinks could be arriving at just the right time. Whether cannabis beverages become a new mainstream pillar or a profitable niche, one thing is certain: this isn't just a side hustle for the cannabis industry anymore. It's a serious bet on how the next generation chooses to relax.

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