Tilray Brands (TLRY) TD Cowen 9th Annual Future of the Consumer Conference summary

Business diversification and strategy

• Diversified from cannabis into beverages, wellness, and distribution due to regulatory limits and market size in Canada.

• Acquired multiple companies in Canada, the US, and Europe, including beer, spirits, and wellness brands.

• US operations focus on beer, spirits, and hemp-derived drinks, with no cannabis sales due to federal restrictions.

• European business includes medical cannabis and pharmaceutical distribution in 20 countries.

• Sales split roughly 30% cannabis, 30% beverage, 30% distribution, and 10% wellness.

Operational initiatives and marketing

• Regionalizing and focusing on select states for craft beer brands, emphasizing innovation and new product launches.

• Closed two breweries to improve efficiency and reduce costs, aiming for higher capacity utilization.

• Leveraging 700-900 distributors, with plans to consolidate and strengthen distributor relationships.

• Investing in social media, event marketing, and sports sponsorships to build brand equity.

• Non-alcoholic and light beer products launched, with Runner's High now in 4,500 locations.

Regulatory environment and market challenges

• Canadian growth limited by high excise taxes and illicit market competition; lobbying for tax reduction and broader retail access.

• US cannabis drinks limited to 13 states due to state-level regulations; lobbying for expansion but cautious on predictions.

• Beer distributors support Delta-9 drinks for growth, while large brewers wait for regulatory clarity.

• European market restricted to flower sales; pre-rolls and other formats not permitted.

• Timing and permit delays in Europe affected revenue guidance.