Tilray Brands Inc (TLRY)

[Bonno]

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 Matt requests for comment on its alcohol strategy.

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.”

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.