Tilray (TLRY) Stock Rises with Launch of New Cannabis Beverage Brand
- Tilray, a cannabis-focused company, has introduced a range of cannabis-infused beverages under its RIFF brand. These products, available in berry and vanilla flavors, are currently only on sale in Canada, where cannabis is legalized.
- The RIFF drinks were produced by Aphria, a company that Tilray acquired in 2021. Tilray has diversified its product portfolio with the Aphria merger, including the addition of beer. However, since the merger, Tilray’s stock has considerably dipped, with losses reported in the recently reported quarter.
- This is not Tilray’s first venture into the beverage sector under the RIFF name. In 2021, the company announced a canned vodka cocktail called Sweetwater RIFF in the U.S., which did not contain marijuana. Tilray is expected to release its next results on Jan. 9, with analysts forecasting a loss of 6 cents per share.
Tilray Expands Into Cannabis Infused Drink Market
Tilray has introduced a new range of cannabis-infused beverages under its RIFF brand.
Source: viewimage / Shutterstock.com
Tilray (NASDAQ:TLRY) announced its new line, RIFF Boost, which led to a modest rise in stock on Jan. 3. This was followed by a 3.5% drop when the markets opened.
The berry and vanilla-flavored products are currently available only in Canada, where cannabis is legalized. Prior to trading, TLRY stock was valued at $2.36 with a market cap of about $1.7 billion.
RIFF’s Journey
RIFF drinks are the work of Aphria, acquired by Tilray in 2021. Since the merger, Tilray’s stock has dropped by 87%.
The merger brought beer into Tilray’s product range, later followed by the purchase of a collection of craft breweries from Anheuser-Busch (NYSE:BUD) in 2021.
For the last quarter that ended in August, Tilray reported a loss of $55.8 million, or 10 cents per share, on revenue of $176.9 million. Around $24 million of the revenue was from alcohol sales.
RIFF’s Future Plans
RIFF is referred to as Tilray’s “premium cannabis brand.” It began with a line of pre-rolled cigarettes launched in August. Tilray now has about 20 different marijuana brands.
RIFF first ventured into beverages in 2021 with a canned vodka cocktail named Sweetwater RIFF, which didn’t contain marijuana.
The overall sentiment on Tilray at Stocktwits remains bearish, but the RIFF announcement had a generally positive reception.
The marijuana industry is eagerly awaiting the opening of the New York market this year, which will also see a clampdown on illegal pot sales.
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