Tilray Brands may make more acquisitions in the alcohol space or even get into growing produce since US cannabis legalization hasn’t progressed as expected, Chief Executive Officer Irwin Simon said.
The company, which sells products with cannabis’ psychoactive ingredient THC in Canada, has a plan to set up an infrastructure for potential distribution in the US should THC become federally legal. But following a lack of US political action, it no longer sees that happening in the near future, the company said on its second-quarter earnings call.
As a result, the company may shift some growing capacity to fruits and vegetables — just as a short-term measure — and plans more alcohol purchases to build out its US distribution network in the event that it can be used one day for cannabis.
“There are food shortages in the world of lettuce, tomatoes, strawberries,” Simon said on the conference call. “If we have overcapacity, how do we start growing fruits and vegetables at some of these facilities and supply food to the world?”
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