Tilray (NASDAQ: TLRY) isn’t just a pot company anymore. In fact, you might argue that it is more of a beer company than a marijuana company at this point. And that could be exceptionally good news for investors, since the company is now more diversified. Here’s why Tilray has chosen to go down this path, the key milestone it just achieved, and why it points to a brighter long-term future.
Wall Street loves a good story
When Tilray went public, marijuana was all the rage. Pot was increasingly being legalized, and investors believed it would be a huge growth opportunity. Tilray’s stock rocketed higher. But it wasn’t the only company trying to capitalize on the dynamics in the marijuana sector. A large number of companies jumped in, creating intense competition.
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And then there was the old competition, illegal sellers, that didn’t go away. It turned out to be harder than expected to turn a profit in the marijuana sector. When investors realized that fact, they dumped pot stocks, including Tilray. Today, Tilray’s stock price is roughly 99% below its all-time high set shortly after its initial public offering. That said, it has managed to survive and adapt.
Tilray goes down a different road
At this point, it is clear that marijuana demand will grow over time. So it isn’t a bad business to be in. However, it is also clear that the opportunity isn’t as exciting as it seemed at first. This is why Tilray began investing in alcoholic beverages, positioning itself as “a global lifestyle and consumer packaged goods company.” Its focus is now spread across beverages, marijuana, and wellness. (Wellness basically means CBD-related products.)
In fiscal 2026, the company made an important acquisition, buying beverage company BrewDog. That has transformed the portfolio, with alcoholic beverages generating $101.5 million in revenue in the first quarter of fiscal 2027, up from $55.7 million in the same quarter of 2026. Marijuana revenues came in at $56.1 million, down from $64.5 million in the first quarter of fiscal 2026. Tilray is an entirely different business today than it was a year ago.
While there is still opportunity for growth in the marijuana sector, the core of the company’s business is its beverage operations. That’s a far more developed industry and one that is likely to be fairly predictable. In other words, Tilray has created a stronger foundation from which to grow. As an investor, you should probably see that as a very positive shift.
