Jones Soda and Tilray Launch Cannabis Beverages in Canada
Jones Soda Co., headquartered in Seattle, is embarking on a collaboration with the licensed producer Tilray Brands to introduce the cannabis-infused beverage line, Mary Jones, into the Canadian market, beginning with Ontario. Known for its craft soda production, Jones Soda Co. has a division specifically aimed at the cannabis sector, marking a significant step as it ventures into the cannabis-infused product space within Canada.
Historically, Jones Soda had confined its Canadian offerings to non-cannabis items. However, the company is set to make its THC-infused beverages available for purchase in Ontario—Canada’s most substantial cannabis market—by the first quarter of 2024. Tilray Brands, based in Ontario, will oversee the manufacturing and distribution processes, while Green Hedge, a leading firm, will handle sales and field marketing efforts.
The collaboration between Jones Soda and Tilray Brands signifies a broader strategy to penetrate other cannabis market segments within Canada. Blair MacNeil, President of Tilray Canada, expressed enthusiasm about manufacturing the unique beverages at their advanced facility in London, Ontario. He highlighted the Mary Jones brand’s significant success in the U.S. and anticipates a similar growth trajectory in Canada.
Jones Soda’s pivot towards the Canadian cannabis sector has been in planning for several years. In 2022, the company advanced its cannabis strategy by acquiring a Canadian shell company and securing $11 million in financing. This funding is earmarked for the development of its cannabis-infused beverages and edibles line. Previously, in 2021, Jones Soda had announced its intention to enter the cannabis beverage market, marking a strategic shift for the company.
David Knight, CEO of Jones Soda, remarked on the partnership with Tilray as a natural progression for Mary Jones’s first international expansion, following its remarkable success in the U.S. He also referenced the foundational roots of Jones Soda in Vancouver, British Columbia, underscoring the significance of entering the Canadian market. The move comes at a time when Canada’s recreational cannabis sales are experiencing growth, with a notable increase reported in July.
Financially, Jones Soda experienced a dip in revenue in the nine months leading up to September 30, with earnings of 13.2 million Canadian dollars, a decrease from CA$15.3 million during the same timeframe the previous year. The revenue breakdown by geography showed the majority of earnings in the United States, followed by Canada, and a minimal amount from other countries.
Jones Soda Co. shares are listed on the Canadian Securities Exchange under the ticker JSDA, while Tilray’s shares trade on the Nasdaq and Toronto Stock Exchange as TLRY, reflecting the companies’ public investment profiles.
This partnership between Jones Soda and Tilray Brands not only marks a significant milestone for Jones Soda Co. as it expands its product line into the burgeoning cannabis market in Canada but also demonstrates the evolving landscape of the cannabis industry, where traditional beverage companies are exploring new territories in cannabis-infused products.
