Tilray Brands has moved to seize complete control of Truss Beverage, the cannabis drink venture it previously shared with Molson Coors Canada, signaling a bold bet on a category that has struggled to meet early hype.
The Leamington, Ontario company confirmed Friday it signed an agreement to purchase the 57.5 percent stake it did not already own. Truss produces brands including XMG, Little Victory, Mollo, Veryvell, and Bedfellows Liquid Arts.
Neither party revealed financial terms. Molson Coors framed the exit as a strategic pivot. Adam Collins, the brewer’s chief communications officer, said the cannabis beverage market failed to expand at the pace industry insiders once predicted. Selling the Truss stake allows Molson Coors to concentrate on segments with stronger growth prospects.
Tilray president Blair MacNeil cast the acquisition differently, calling it a move that “further strengthens” the company’s position in Canada. He pointed to Truss as a way to broaden Tilray’s portfolio of high-growth brands and extend its consumer reach.
The deal arrives during a period of widespread retrenchment across the cannabis sector. Companies have grappled with a resilient illicit market, slower-than-expected U.S. legalization, and retail saturation that makes brand loyalty elusive. Layoffs and facility closures have become common responses.
Tilray, meanwhile, has doubled down on beverages. The company inherited SweetWater Brewing Company through its 2020 Aphria merger, paying US$300 million for the Atlanta craft beer maker. Just weeks ago, Tilray announced a separate deal to buy eight beer and beverage brands from Anheuser-Busch, positioning itself to become the fifth-largest craft beer operator in the United States.
Cannabis drinks remain a tough sell, however. Ontario Cannabis Store data shows beverages accounted for only two percent of sales between January and March 2022. Dried flower dominated with half of all purchases.
TD Cowen analyst Vivien Azer offered a more optimistic outlook, noting that as tobacco combustion declines, non-combustible cannabis formats such as beverages could gain popularity as social lubricant alternatives to alcohol.
