Tilray Brands is moving deeper into THC-infused beverages – and getting higher in the process.
The publicly traded cannabis and beer company this morning announced the introduction of new 10 mg THC versions from its Fizzy Jane’s and Happy Flower brands, available exclusively in the U.S.
The move arrives amidst an industry-wide uptick from lower dose (2.5 mg to 5 mg THC) products to 10 mg drinks; according to data from Brightfield Group and Sightlines, last year, sales of drinks with at least 10 mg hemp-derived THC rose 17.9%, representing 60% of the total market. Sales of 5 mg products grew around 6.7%, while 2-5 mg drinks fell 8.6%.
“When it comes to the evolving hemp beverage space, we’ve seen firsthand that our consumers have varied lifestyles and diverse needs,” explained Sam Garfinkel, SVP of Commercial Operations & Strategy at Tilray Wellness. “Consumers are seeking variety in not just flavor, but also experience, which is why it was important to us to have both 5 mg and 10 mg offerings. We’ve seen the most success with our 10 mg products in market, but still feel that 5 mg options are important for key consumer segments.”
The segmentation is also part of an effort to purposefully build the THC beverage set to address different consumers and need states: introduced last fall at stores like Total Wine & More and ABC Fine Wine & Spirits, Happy Flower is for drinkers seeking a “full-flavor cocktail,” but now with a little extra. The new 10 mg versions of the line’s three SKUs — Margarita, Strawberry Daiquiri and Peach Bellini — have been dubbed its “Super Bloom” Collection.
Happy Flower is also flexing in format, rolling out 6-count Variety Packs in both 5 mg ($17.99) and 10 mg ($19.99) formats with two cans of each flavor.
Meanwhile, Fizzy Jane is positioned as a “lightly flavored, lower calorie product.” The infused seltzer line debuted with three flavors — Vanilla, Blood Orange, and Lemon Lime, all with 5 mg THC — this spring in Georgia, North Carolina and South Carolina, and has since expanded at retail in 10 states including New Jersey, Ohio and Florida. 4-packs of 5 mg drinks go for $15.99, with 10 mg packs for $19.99.
“Separating those two verticals into different brands allows us to stay focused with our messaging and build equity over time,” said Garfinkel.
Tilray’s American-made THC drinks are now available in 13 states across 1,300 points of distribution, leadership shared during the company’s FY2025 earnings report last month. The company’s Wellness division reported $60 million in revenue (+9% YoY) for the fiscal year; net revenue grew 9% to $17 million in Q4.
Infused drinks from Happy Flower and Fizzy Janes’s have provided a bulwark from faltering beer sales as Tilray works to execute “Project 420,” an effort aimed at generating $25 million in costs savings by rationalizing its SKU count and consolidating its operational footprint.
“Consumers have grown accustomed to having an extensive variety of beverage options at their fingertips, and hemp beverages are no different,” said Garfinkel. “They’re just starting to understand nuances in intensity of experience, flavor, and format, and are beginning to develop preferences. There is a ton of exploration happening right now, so it’s important for us to help consumers find the right product for each occasion.”
Tilray will be hoping more good news is on the way: the company’s stock skyrocketed more than 41% on Monday, its best day since 2021, in the wake of speculation that President Trump may be preparing to reclassify marijuana as a less dangerous drug by federal guidelines.