Business
Can Tilray successfully synergize its cannabis, alcohol businesses?
With its right hand, Tilray Brands has consolidated a swath of the Canadian cannabis market, most recently buying Hexo Corp. in its quest to grow market share.
With its left hand, Tilray has gone on a beverage alcohol acquisition bender in the United States.
After several alcohol acquisitions that turned Tilray into one of the largest U.S. craft brewers, the company recently announced an $85 million deal to acquire eight craft beer brands from brewing behemoth Anheuser-Busch InBev.
As the dust settles on Tilray’s latest alcohol purchase, a question lingers for investors: Will the company be able to build meaningful ties between its cannabis business and its alcohol operations, in accordance with statements made by company management?
For now, cannabis remains Tilray’s biggest business in terms of revenue.
During Tilray’s August conference call explaining the Anheuser-Busch transaction, CEO Irwin Simon said the company’s pro-forma revenue of about $860 million includes:
- 30% beverage alcohol.
- 30% Canadian medical and adult-use cannabis.
- 30% European medical marijuana distribution.
- 10% food and wellness.
Diversifying beyond cannabis
Proponents of Tilray’s strategy see promise in the company’s diversification into alcohol.
“First, obviously there’s the potential upside in craft beer itself, and even spirits, where they’ve moved into as well,” especially since some big players such as Anheuser-Busch are focusing less on craft beer, said Owen Bennett, senior vice president of equity research at New York-based financial services company Jefferies.
“And then, second, you’ve got what it can do from a cannabis value-creation perspective. … It is allowing marketing and brand equity-building among mass-market consumers ahead of any (federal) legalization,” Bennett said.
Tilray skeptics, on the other hand, might argue that the company has lost its focus.
In news releases, Leamington, Ontario, and New York-headquartered Tilray has taken to describing itself as “a global cannabis-lifestyle and consumer packaged goods company.”
“I don’t know what a lifestyle company is,” said Rob McPherson, a CPG veteran and former president of Bacardi Canada who has criticized Tilray management.
“Last time I looked, everything is a lifestyle and anything is a lifestyle.”
Tilray did not respond to MJBizDaily requests for comment on its alcohol strategy.
Linking alcohol distribution with cannabis
Tilray management has cited potential for cost synergies between its Anheuser-Busch beer acquisitions and its existing beverage alcohol brands.
Beyond that, however, Tilray has spoken of potential distribution synergies between Tilray’s alcohol and cannabis businesses in the event that the U.S. legalizes marijuana federally.
In the August conference call, CEO Simon asked: “Ultimately, upon (U.S. federal marijuana) legalization one day, is there the opportunity for adjacencies in the THC and CBD world, and having that distribution system, having those manufacturing facilities?”
“Again, we’re not dependent upon it,” Simon continued.
“But there’s a lot of great companies that have been built around the beer category.”
“I think it is the most obvious way for them to leverage these beer investments,” said Vivien Azer, managing director and senior research analyst for New York-headquartered financial-services firm Cowen.
Azer said that the alcohol industry has been lobbying for marijuana to be regulated along the same lines as spirits – in a three-tier system of producers, distributors and retailers.
But potential synergies between Tilray’s existing alcohol distribution network and a hypothetical, future U.S. marijuana distribution system are just that – hypothetical – and would depend on the actual details of any federal legalization law.
McPherson, the former Bacardi Canada executive, pointed out that alcohol distribution “lives at the state level, not at the federal level, so each individual state can have its own individual definition of distribution.”
Given complex state-by-state differences, McPherson suggested that Tilray’s ability to shoehorn marijuana distribution into the existing U.S. alcohol distribution system is by no means assured.
“I think it would be naive to assume that that will happen – and that it will happen at that pervasive level. … Cannabis is going to be complex enough,” he said.
“And you layer that complexity into the already-complex distribution system for beverage alcohol – it’s just nonsensical.
“But it sounds really good if you say it.”
Connecting alcohol, cannabis brands
Aside from a distribution link between cannabis and alcohol, Tilray’s C-suite has hinted – albeit sometimes indirectly – at a more ambitious synergy: linking alcohol brands and consumers with cannabis products in one way or another.
In 2020, after Aphria acquired SweetWater Brewing Co., then-Aphria Chief Financial Officer Carl Merton (now CFO of Tilray Brands after Tilray and Aphria merged) told MJBizDaily that the Atlanta-based craft brewer offered “an incredible reach to a consumer that is already thinking about cannabis, and this acquisition allows us to access that consumer years in advance of federal legalization.”
Similarly, in its late 2022 announcement that it had acquired New York-headquartered Montauk Brewing, Tilray cited plans “to leverage our growing portfolio of U.S. CPG brands and ultimately to launch THC-based product adjacencies upon federal legalization in the U.S.”
Consumers will eventually “see beer with THC in it in the U.S.,” Tilray CEO Simon said on a January 2023 earnings call.
“One day, you’ll see spirits with THC in the U.S.,” he added.
It’s not clear whether Simon meant such beverages would contain both alcohol and THC or only THC.
Tilray has also started experimenting with bringing one of its Canadian adult-use cannabis brands, Good Supply, into the U.S. beer market: Good Supply-branded light beer launched in Connecticut, Georgia and New York in June, with the promise of further launches in Massachusetts and Rhode Island.
On the August conference call, Simon said that “when federal cannabis legalization occurs, (Tilray) will be able to include THC-based products in our beverage and wellness portfolio as well.”
The exact details of how Tilray might align THC with its non-cannabis brands remain a mystery.
However, U.S. beverage alcohol companies are already “pushing the boundaries around brand transferability” within alcohol, observed Cowen’s Azer – for example, the beer brand Coors offers a Coors seltzer product, and the Truly Hard Seltzer brand sells Truly-branded vodka.
“But we don’t have any strong analogues in terms of brand transferability between cannabis and alcohol.”
Tilray is clearly bullish on marijuana drinks, given its recent purchase of the remaining interest in its Truss cannabis drink joint venture from Molson Coors Canada.
Analyst Bennett believes many new cannabis consumers are likely to enter the segment via beverages, since they’re familiar with the format.
“I think having an established beverage presence with existing alcohol consumers that trust the brand should position Tilray to really drive maximum upside from these dynamics, relative to pure-play cannabis companies that are looking to expand into the beverage space,” Bennett said.
On the other hand, skeptics point out that any Tilray plan to link alcohol and marijuana brands in the U.S. after federal legalization hinges on an event that has not yet occurred.
“The first thing that has to happen is, the U.S. has to actually federally legalize – when that’s going to happen is anybody’s guess,” said McPherson, the former Bacardi Canada president.
McPherson pointed out that federal adult-use legalization took years even in Canada, where Justin Trudeau’s Liberal government had a parliamentary majority (and a specific campaign promise surrounding cannabis legalization).
Even in the event that Tilray does extend its alcohol brands into cannabis, McPherson suggested that wouldn’t necessarily be a slam dunk.
“There’s efficiency and there’s effectiveness, and a lot of brands go the efficiency route,” he said, “and you start to see the same brand name playing across multiple categories because it’s efficient: ‘There’s an existing level of consumer awareness, so we’re going to try to leverage that.’”
But branding efficiency can lead to reduced brand effectiveness, McPherson argued, “because you’ve had to cut a wider swath, you’ve had to make more compromises, you’ve had to shave off a lot of the sharp edges that end up catching consumers’ attention.”
Even if crossovers between Tilray’s alcohol brands and cannabis never play out, the alcohol assets have stand-alone value.
Cowen’s Azer said that Tilray’s beer and liquor acquisitions give it “exposure to the U.S. alcohol segment, which generally grows at a mid-single-digit (compound annual growth rate).”
Analyst Bennett acknowledges that Tilray receives “some criticism that they’re diversifying out of cannabis.”
“But No. 1, they’re very open that they’re no longer a cannabis business,” he said.
“No. 2, as a shareholder, all you should really care about is, is this company generating value? And are they sticking to the strategy they lay out to investors?”
Source: https://mjbizdaily.com/can-tilray-successfully-synergize-its-cannabis-alcohol-businesses/
Business
Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light
Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.
India’s Indigenous LEO Satellite Vision
Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.
The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.
According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.
The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.
Regulatory Process Moves Forward
Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.
The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.
Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.
Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.
Broadband, Mobile Connectivity, and Strategic Applications
Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.
The company also intends to establish 20 to 22 ground stations across India to support network operations.
Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.
Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.
Major Step for India’s Space and Telecom Sectors
Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.
The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.
Business
Alleged Crores Pharma Scam Mastermind Arrested from Surat
After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.
Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.
Fake Business Deals and Dishonoured Cheques Used in Fraud
Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.
In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”
Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.
Multiple Identities and Repeated Fraud Pattern
Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.
Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.
Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.
Multi-State Surveillance Leads to Arrest in Surat
A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.
Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.
Growing Threat of Corporate Identity Fraud
The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.
Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.
Experts Urge Stronger Due Diligence in High-Value Transactions
Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.
Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
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