Cannabis company Tilray Brands Inc. is taking on full ownership of the pot drinks company it ran with Molson Coors Canada.
The Leamington, Ont.-based pot firm said Friday that it had signed a deal to acquire the remaining 57.5 per cent of Truss, which is behind the XMG, Little Victory, Mollo, Veryvell, House of Terpenes and Bedfellows Liquid Arts brands.
The companies did not disclose the terms of the deal, but Molson Coors indicated it was willing to relinquish its stake because of the state of the market.
“The cannabis beverage market hasn’t grown to the industry’s initial expectations, so we decided to sell our portion of the TrussCanada joint venture and exit this space as we turn our focus to other segments with stronger growth potential,” said Adam Collins, the brewer’s chief communications officer, in a statement.
However, Blair MacNeil, Tilray’s president, saw Truss as a way for his company to bolster its “stable of high-growth brands” and said the acquisition “further strengthens” its position in the Canadian market.
“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,” he said in a statement.
Tilray’s move to up its stake in Truss comes as the cannabis industry rethinks how it can deal with persistent market headwinds.
Some firms have lamented how the illicit market has proved resilient, U.S. legalization has been slower than expected and a proliferation of cannabis stores has made building brand loyalty difficult.
To cope, many companies have resorted to layoffs and facility closures, but several are also eyeing other businesses.
Aurora Cannabis Inc., for example, is ramping up plans to grow and sell orchids.
Tilray, meanwhile, has put much of its attention on beverages.
