Weed’n Whiskey – Why Tilray Believes Cannabis Infused Whiskey Contains Gold

In December 2021, Tilray made headlines by buying Breckenridge Distillery, a Colorado-based distillery, in a large deal for $ 102.9 million to infuse whiskey with cannabis.

“Tilray’s strength lies in our ability to identify and grow significantly leading CPG lifestyle brands that are well received by consumers. Breckenridge Distillery is an iconic addition to our platform in this regard, based on their portfolio of award-winning spirits, passionate consumer commitment and a strong sales and distribution network, ”said Tilray CEO and Chairman Irwin D Simon.

“We see enormous potential for Breckenridge and our existing Sweetwater brands to complement each other, expand their respective reach and drive further profitable growth in our beverage alcohol segment,” he added in a press release.

“Generally speaking, the Breckenridge Distillery transaction is in line with Tilray’s strategy of leveraging our growing portfolio of US CPG brands to bring THC-based product neighborhoods to market after state legalization in the US. These significant, diversified revenue streams are key to achieving our ultimate goal of industry leadership of $ 4 billion in sales by fiscal year 2024. “

Breckenridge was founded in 2008 by Bryan Nolt; You currently have an impressive portfolio that includes bourbon whiskeys as well as spiced rum and vodka. Tilray explains that with the acquisition they were hoping to develop cannabis-infused but non-alcoholic spirits like bourbon. Additionally, they see great potential to expand Breckenridge’s line nationwide as 85% of their sales still come from Colorado. “We are excited to join Tilray and drive sales growth as part of its global and leading CPG (Consumer Packaged Goods) and cannabis lifestyle platform,” said Nolt.

“The award-winning spirits that have made our success possible will no doubt benefit from access to Tilray’s global distribution network and the ability to expand into cannabis and edibles in the United States.”

Big alcohol looks green in cannabis

It’s no secret that the alcohol industry has long had its eye on cannabis. After all, if you live in a legal state, you’ve likely seen numerous types of infused beverages. Cannabis drinks are going to be the next big thing, and there is no doubt about that.

It all started in 2017 when Constellation Brands pioneered a 10% investment in Canopy Growth, a Canadian cannabis company. Although Constellation wants to keep a larger stake in a company, they lost millions of dollars to the deal. This hasn’t stopped other alcohol companies from dipping their toes into the cannabis world: in 2018, Great North Distributors, a subsidiary of Southern Glazer’s, began distributing Aphria. In early 2021, Molson Coors launched Truss, a CBD brand for sparkling water.

In the cannabis beverage market, beverages are divided into 2 categories: CBD and THC. They are attractive to both drinkers and cannabis users for many reasons, primarily because they are excellent alternatives to alcohol, are low in calories, and have more health benefits compared to straight alcohol.

Combining cannabis with whiskey is just another brilliant addition; As anyone in the know can tell you, these two mix very well. However, government regulation means that for every drink, whether infused with THC or CBD, there are different ways to market to different destinations. However, because Colorado has social use licenses, which means companies are allowed to sell recreational marijuana to adults on-site, it has become a great case study. Social usage aside, there will be tremendous lucrative opportunities for hospitality companies to offer this.

Another reason cannabis beverages are skyrocketing is because we now have better technology to make this possible. When you infuse your favorite alcohol with weed, you no longer have to experiment at home, but the development of nanotechnology and other technologies allows cannabinoids and terpenes in the plant to have better bioavailability for the consumer and make them more predictable. After all, edibles are known to have the slowest onset of all types of marijuana use, but now the alcohol and beverage industry is changing that.

However, the cannabis beverage industry still has some obstacles to overcome, even if many have paved the way for them. The hurdles are still legal, but so are the rest of the industry. Eventually, since products can be consumed for recreational purposes in some states, THC-infused beverage companies can obtain the licenses necessary to sell to pharmacies. However, the same does not apply to CBD made from hemp, as the FDA was still vague on this area. Currently, the use of CBD in beverages is still illegal as it is still classified as unsafe by the FDA. And since it’s used in drugs like Epidiolex, it’s technically forbidden to put drug ingredients in food and drinks.

That hasn’t stopped brands from getting to market with CBD-infused beverages, and what’s more, the FDA has limited resources to track all of these brands.

Nevertheless, it is clear that there is money to be made there. A report by MarketGlass said the U.S. cannabis drinks market will hit $ 649.1 million by the end of 2021 and hit a cool $ 2 billion by 2026. So we’re waiting to see how things go with Tilray and hope that the FDA can make CBD drinks more readily available.

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