Tilray Brands Leverages Hemp and Beverage Scale to Launch Hemp-Derived Delta-9 THC Drinks in Key Markets Across the United States

Rhea-AI Summary

Tilray Brands, Inc. (NASDAQ: TLRY and TSX: TLRY) is set to launch a portfolio of hemp-derived Delta-9 THC (HDD9) beverages in key U.S. markets starting October 2024. The new product line, developed under Tilray Alternative Beverages, includes premium mocktails, seltzers, and sparkling drinks containing 5mg HDD9 per can. The initial brands are:

1. 420 Fizz: A modern seltzer
2. Herb & Bloom: Super-premium mocktails
3. Fizzy Jane's: Light seltzers in three flavors
4. Happy Flower: Classic cocktail-inspired drinks

Tilray, a leader in cannabis, hemp, and beverages, aims to capitalize on the growing demand for alternative adult beverages. The company plans to introduce additional HDD9 brands and product categories later in the year.

Positive

• Expansion into the growing HDD9 beverage market in the U.S.
• Leveraging existing leadership in hemp food and craft beer industries
• Diversification of product portfolio with four new HDD9 beverage brands
• Strategic partnership with Emergent Beverage for market entry in Texas and Louisiana

Negative

• None.

Insights

Beverage Industry Analyst

Tilray's strategic entry into the hemp-derived Delta-9 THC (HDD9) beverage market is a significant move that leverages their existing strengths in hemp and craft beer. This diversification into a growing alternative beverage category could potentially open up new revenue streams and market share.

The company's approach is noteworthy for several reasons:

• Targeting various consumer segments and occasions with different brands (420 Fizz, Herb & Bloom, Fizzy Jane's and Happy Flower)
• Utilizing their expertise in hemp and beverages to develop high-quality products
• Partnering with Emergent Beverage for distribution in Texas and Louisiana, potentially accelerating market penetration

However, investors should be aware of regulatory risks associated with HDD9 products and potential challenges in consumer adoption. The 5mg THC content per can is relatively low, which may impact efficacy and repeat purchases. The success of this venture will largely depend on Tilray's ability to navigate the complex regulatory landscape and effectively market these new products in a crowded beverage market.

Cannabis Market Analyst

Tilray's expansion into the HDD9 beverage market is a strategic move that could significantly impact their business model and market position. This initiative allows Tilray to:

• Capitalize on the growing trend of cannabis-infused beverages
• Leverage their existing distribution networks and brand recognition
• Potentially capture market share in states where traditional cannabis products are not yet legal

The timing of this launch in October 2024 is crucial, as it positions Tilray at the forefront of a rapidly evolving market. The diverse product lineup caters to different consumer preferences, which could lead to broader market penetration. However, the success of this venture hinges on several factors:

• Consumer acceptance of HDD9 products
• Regulatory stability and potential changes in hemp-derived THC laws
• Competition from both traditional beverage companies and cannabis firms

Investors should monitor the initial reception of these products and any regulatory developments closely, as they will be key indicators of the long-term viability and profitability of this new business unit.

NEW YORK, Sept. 24, 2024 (GLOBE NEWSWIRE) -- Tilray Brands, Inc. (“Tilray” or the “Company”) (NASDAQ: TLRY and TSX: TLRY), through its newly formed Tilray Alternative Beverages business unit, unveils its portfolio of hemp-derived Delta-9 THC (HDD9) beverages to launch in key markets across the U.S., beginning in October 2024. Tilray’s lineup of HDD9 drinks include premium mocktails, seltzers and sparkling drinks made with high-quality hemp extracts and ingredients that provide consumers with a familiar, convenient, and delicious way to relax and unwind.

Tilray Brands is a leader in the cannabis, hemp, and beverage industries, driving innovation and paving the way for a new era of consumer products. With the leading branded hemp food business in North America and the 5th largest craft beer business in the U.S., Tilray’s team of hemp and beverage experts have conducted extensive research and product testing to develop a portfolio of HDD9 brands and products that meet the Company’s high standards for quality, safety, and experience.

As consumers seek out new and alternative adult beverages, Tilray is strategically entering the growing HDD9 beverage category in the U.S. market with a consumer-centric model that targets different occasions across various consumer audiences and price segments. Tilray’s inaugural portfolio of HDD9 brands includes 420 Fizz, Herb & Bloom, Fizzy Jane’s, and Happy Flower. Additionally, Tilray plans to introduce other HDD9 brands and product categories later this year.

420 Fizz is a sleek and modern brand built off Tilray’s iconic 420 beverage platform. Enhanced with 5mg HDD9 per can, 420 Fizz is an exciting new seltzer with a refreshing taste.

Herb & Bloom, a super-premium mocktail, offers a unique way to experience timeless classics with its harmonious blend of refreshing fruit notes infused with 5mg HDD9 per can. Each drink is crafted for a smooth and balanced experience, resulting in a delicious taste. Welcome to a world blooming with possibilities.

Fizzy Jane's is a light and delicious seltzer with 5mg HDD9 per can and three classic flavors Blackberry, Blood Orange and Vanilla. A nostalgic brand created for the curious consumer.

Happy Flower is inspired by classic cocktails, with a citrusy Margarita, a juicy Strawberry Daiquiri, and a bubbly and fruity Peach Bellini. Each Happy Flower cocktail contains 5mg HDD9 THC per 12oz. can and provides a new way for consumers to relax and unwind in a format that’s familiar, convenient, and delicious. Tilray will launch Happy Flower in partnership with Emergent Beverage in the Texas and Louisiana markets.

Tilray's portfolio of HDD9 beverages offers consumers carefully formulated products for a smooth and balanced experience, providing a new and responsible way to enjoy adult alternative products. This initial offering is just the beginning of Tilray's strategic approach to capitalize on the growing demand for alternative adult beverages and the HDD9 beverage market. 21+ only. Always enjoy responsibly.

About Tilray Brands
Tilray Brands, Inc. (“Tilray”) (Nasdaq: TLRY; TSX: TLRY), is a leading global lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is leading as a transformative force at the nexus of cannabis, beverage, wellness, and entertainment, elevating lives through moments of connection. Tilray’s mission is to be a leading premium lifestyle company with a house of brands and innovative products that inspire joy, wellness and create memorable experiences. Tilray’s unprecedented platform supports over 40 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.

For more information on how we are elevating lives through moments of connection, visit Tilray.com and follow @Tilray on all social platforms.

Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this communication that are not historical facts constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under U.S. and Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by words such as “forecast,” “future,” “should,” “could,” “enable,” “potential,” “contemplate,” “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections, or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication. Forward-looking statements include statements regarding the market opportunities and regulatory risks for HDD9 beverage products, and expected sales, distribution, margin, price and revenue generation projections; consumer sentiment regarding HDD9 beverage products; and Tilray’s strategy and anticipated offerings within the HDD9 beverage product segment. Many factors could cause actual results, performance, or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to Tilray or that Tilray deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of these risks and other factors, see the most recently filed Annual Report on Form 10-K (and other periodic reports filed with the SEC) of Tilray made with the SEC and available on EDGAR and in Tilray’s Canadian securities filings. The forward-looking statements included in this communication are made as of the date of this communication, and, while Tilray believes that information provides a reasonable basis for these statements, these statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. You should not rely upon forward-looking statements or forward-looking information as predictions of future events and Tilray does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.

Media Contact: news@tilray.com

Investor Contact: investors@tilray.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f7eca11c-7e92-4720-9bfe-d9514de7c336

FAQ

When will Tilray Brands launch its hemp-derived Delta-9 THC beverages in the US?

Tilray Brands plans to launch its hemp-derived Delta-9 THC (HDD9) beverages in key U.S. markets beginning in October 2024.

What are the new HDD9 beverage brands introduced by Tilray (TLRY)?

Tilray (TLRY) is introducing four new HDD9 beverage brands: 420 Fizz, Herb & Bloom, Fizzy Jane's, and Happy Flower.

How much HDD9 THC is in each can of Tilray's new beverages?

Each can of Tilray's new HDD9 beverages contains 5mg of hemp-derived Delta-9 THC.

Which markets will Tilray (TLRY) initially launch its Happy Flower HDD9 beverages?

Tilray (TLRY) will initially launch its Happy Flower HDD9 beverages in partnership with Emergent Beverage in the Texas and Louisiana markets.