Tilray Brands Announces Acquisition of Truss Beverage Co.™

Acquisition Positions Tilray as Leader in Adult-Use Cannabis Beverages in Canada, with a Combined Pro-Forma Market Share of ~36%¹

LEAMINGTON, Ontario, Aug. 18, 2023 (GLOBE NEWSWIRE) -- Tilray Brands, Inc. (“Tilray Brands”, “Tilray” or the “Company”) (Nasdaq | TSX: TLRY), a leading global cannabis-lifestyle and consumer packaged goods company, today announced the acquisition of the remaining 57.5% equity ownership of Truss Beverage Co.™ (Truss) from Molson Coors Canada (NYSE: TAP).

THC beverages present a significant opportunity to engage legal-aged consumers who haven’t explored cannabis as a lifestyle, medical, or functional choice. In Canada, with over 10.6 million² potential consumers remaining untapped, cannabis beverages are almost $100MM³ at retail. Regulatory shifts are expected to facilitate market entry for beverages, with the possibility of on-tap THC options in restaurants and bars promising substantial growth for this category. Over time, we expect the regulatory landscape for beverage distribution to evolve, with authorities re-evaluating their consumer policies. We expect this shift to fuel strong growth in the market for cannabinoid-based beverages, catering to diverse needs and occasions.

Blair MacNeil, President, Tilray Canada, said, “In addition to acquiring full and direct ownership of a stable of high-growth brands, this acquisition further strengthens Tilray’s #1 cannabis market share position in Canada and positions the company at the forefront of the adult-use beverage sector. We are excited to build upon our leading portfolio of beloved cannabis brands and to further diversify our product offerings while broadening our consumer reach and enhancing consumer’s lives.”

Beyond the cannabis industry, functional beverages represent significant growth. These beverages offer consumers the functional advantages of THC and the diverse range of minor cannabinoids. These elements provide many benefits and other opportunities that enhance the lives of adults.

Strategic and Financial Benefits

• Robust Cannabis Beverage Platform Positions Tilray at the Forefront of a Dynamic Market. As regulations ease, Tilray's expansion into the billion-dollar functional drinks category is a strategic step into a dynamic market. Tilray is positioned to capitalize on this trend. By embracing this evolving landscape, Tilray not only taps into a lucrative market but also aligns with the changing preferences of consumers seeking functional benefits. This move reflects Tilray's commitment to innovation and consumer needs, setting the stage for a new era of cannabis-infused beverage experiences.
  
• Bolsters Tilray’s Portfolio of Cannabis Beverage Brands and Strengthens #1 Market Share Position. With a combined pro-forma market share of approximately ~36% (+33.2%), Tilray substantially broadens its consumer base and leading market share position. Tilray's expanded cannabis portfolio now includes the fastest-growing beverage brands including; XMG, Mollo, House of Terpenes, and Little Victory.
  
• Enhances Commercial Framework with Streamlined Sales & Distribution. As retailers navigate the evolving landscape of product offerings, Tilray's comprehensive range empowers them to efficiently address a substantial portion of their business needs in just one visit.
  

Discover our new lineup of beverage brands, including XMG, Mollo, House of Terpenes, and Little Victory, at cannabis retailers nationwide. Get ready for even more exciting product releases on the horizon.

About Truss Beverage Co.

Truss Beverage Co. is a wholly owned subsidiary of Tilray Brands, a licensed producer of cannabis products in Canada; formed to lead innovation in the development of non-alcoholic, cannabis-beverages for the Canadian market. Produced through Truss Cannabis-Infused Beverages, a division of Tilray Brands, the Truss portfolio has a range of products for Canadian consumers of legal age, providing a variety of taste experiences for multiple beverage occasions.

Truss Beverage Co. will deliver on its promise to be the cannabis beverage specialist through extraordinary products and marketing that reinforces its commitment to responsible adult use.

About Tilray Brands

Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY), is a leading global cannabis-lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is changing people's lives for the better – one person at a time. Tilray Brands delivers on this mission by inspiring and empowering the worldwide community to live their very best life, enhanced by moments of connection and wellbeing. Patients and consumers trust Tilray Brands to be the most responsible, trusted and market leading cannabis consumer products company in the world with a portfolio of innovative, high-quality, and beloved brands that address the needs of the consumers, customers, and patients we serve. A pioneer in cannabis research, cultivation, and distribution, Tilray Brands’ unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.

For more information on Tilray Brands, visit www.Tilray.com and follow @Tilray

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 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 our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: anticipated accretion, Tilray shareholder value and profitability related to the Truss Beverages Co.™ acquisition; expected revenue growth, production efficiencies, sustainability efforts, strengthened market positioning, market share, operational scale and potential cost saving and brand portfolio synergies resulting from the Truss Beverages Co.™ acquisition; expectations regarding consolidation in the cannabis industry; and the Company’s ability to commercialize new and innovative products. 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 the Company or that the Company 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 Brands made with the SEC and available on EDGAR. The forward-looking statements included in this communication are made as of the date of this communication and the Company 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:
Jaydon Case
news@tilray.com

Investors
Raphael Gross
203-682-8253
Raphael.Gross@icrinc.com

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¹ Source: HiFyre, WeedCrawler, Provincial Board & Company data (July 2023)
²Source: Statistics Canada 2022 population by age including only ages 20-44
³ Source: Report by M. Ridder, February 25, 2022, Non-alcoholic beverages in Canada - statistics & facts