A prominent American alcohol distributor with a long history dating back to the early 1900s will now be assisting a cannabis conglomerate with its CBD beverage distribution endeavours.
On Wednesday, Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY) announced that its Fresh Hemp Foods, Ltd. division had signed a distribution contract with Southern Glazer’s Wine & Spirits.
Tilray states that the new agreement will provide the company with direct access to Southern Glazer’s distribution network capable of reaching a broad range of consumers.
We are excited to announce Fresh Hemp Foods, a part of our Tilray Wellness division, has signed a distribution agreement with @SGWineSpirits. They will be the exclusive distribution partner for our CBD beverage portfolio across 13 states. Details https://t.co/tjVxbKlnPa $TLRY pic.twitter.com/YvrthK4VhF
— Tilray Brands (@tilray) August 3, 2022
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Tilray is an international company with a variety of cannabis subsidiaries including Good Supply, a producer of pre-rolls, flower, concentrates and vapes; Chowie Wowie, a multi-flavour edibles company; and Broken Coast, a brand solely focused on producing high-grade cannabis flower.
Southern Glazers Wine & Spirits is the largest U.S. alcoholic beverage wholesaler with distribution operations in 44 states.
Tilray claims that the new strategic agreement between the companies will allow it to develop a U.S. CBD beverage catalogue within familiar retail channels — transitioning the drink category out of the fringe and into the mainstream.
“This agreement helps Tilray uniquely position itself to enter the multi-billion-dollar adult beverage category with a non-alcoholic, CBD beverage alternative, for consumers who want to relax and unwind,” said Jared Simon, President of the Tilray Wellness and Fresh Hemp Foods divisions.
Tilray also says that it is excited to be able to utilize the most knowledgeable CBD sales team in the industry and be part of Southern Glazer’s successful Proof e-commerce platform, allowing retailers to access Tilray’s CBD drink catalogue at any time.