Canadian cannabis company Aphria is looking to expand its business into the consumer products space with the acquisition of new businesses.
“There’s many opportunities in the U.S. right now with food and drink and other consumer products, and I know about how to build consumer brands and parlay that into cannabis once legalization happens,” said Irwin Simon, the company’s chief executive.
The company’s move to explore the acquisition of other businesses underpins its strategy to leap ahead of its competition if and when marijuana is legalized in the U.S.
“Not knowing when [cannabis] legalization happens in the U.S., I want to continue to acquire certain businesses like a Sweetwater, like a Manitoba Harvest, that can parlay in the cannabis world once legalization happens with great margins, great growth and great distribution for us,” Simon told CNBC.
Simon has over 25 years of experience working as the CEO and chairman of Hain Celestial Group, which specializes in selling natural and organic and food and beverage and personal care products.
Aphria acquired U.S.-based independent craft brewer Sweetwater in November last year. The company then merged with Tilray, another Canadian cannabis company, and its hemp product brand Manitoba Harvest, becoming the largest cannabis company by revenue, CNBC reported.
Aphria’s stock tumbled yesterday by 14 percent after the company reported that its sales were down due to lockdowns in Canada and Germany in Q3.
“In the U.S., we had a solid first full quarter of contribution from Sweetwater even with lower on-premise sales compared to the prior year quarter as many foodservice industry establishments were still operating with limited capacity,” Simon noted in a press release.