Cannabis company Tilray, Inc. TLRY participated in The Barclays Global Consumer Staples Conference, and CEO Brendan Kennedy told Bloomberg there is "a lot of interest" among participants in gaining new exposure to cannabis.
What Happened
Many Fortune 500 CPG brands are looking at the cannabis industry as an area for potential growth over the next decade, Kennedy said on "Bloomberg Daybreak: Americas" Thursday.
For the time being, many companies are taking a cautious approach toward exposing themselves to cannabis, and exploratory conversations take a full year before any progress is made, he said.
The cannabis sector remains in a very early stage, as medical cannabis is legalized in just 20% of the world, Kennedy said.
Legalization of recreational cannabis has taken place in just two countries, which accounts for 1% of the world, the CEO said.
Ultimately, medical and recreational legalization will expand globally and help usher in a $150-billion to $200-billion industry, he said.
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Why It's Important
If the global cannabis market expands as Kennedy said it will, his company will be well-positioned to address the demand.
Tilray started 2018 with 60,000 square feet of manufacturing space, a figure that grew to 1.1 million square feet at the start of 2019.
Today, the company's footprint stands at 3.4 million square feet worldwide.
What's Next
Tilray's recent earnings report showed a notable uptick in exports but a decline in average selling price.
The company's ASP was impacted by the mix of products sold and should tick higher in the fourth quarter as Tilray starts selling new value-added products in Canada, Kennedy said.
Tilray shares were up 5% at $31.50 at the time of publication Thursday.
Related Links:
Cannabis Countdown: Top 10 Marijuana Stock News Stories Of The Week
New Report Puts North American Cannabis Market At $47.3B By 2024
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