The Globe and Mail reports in its Friday edition that Tilray is eyeing potential acquisitions of domestic producers in a bid to achieve greater market share and reach an annual revenue target of $4-billion (U.S.) by 2024. The Globe's Vanmala Subramaniam quotes chief executive officer Irwin Simon saying that while he originally believed Tilray could increase sales with its existing range of product offerings, he has come to realize that the Canadian recreational market is too fragmented and more consolidation is needed. That thinking was behind the acquisition of rival Aphria earlier this year. There are more than 500 licensed cannabis producers in Canada, ranging from microgrowers to production giants such as Tilray, Hexo and Canopy Growth. Those three companies make up 34 per cent of recreational cannabis sales. Tilray says it has captured 16 per cent of the Canadian cannabis market and intends to double that over the next three years, but gaining market share is a challenge. Tilray derives a bulk of its revenue from its pharmaceutical distribution business in Germany, CC Pharma GmbH, in addition to alcohol sales from its ownership of Atlanta's SweetWater Brewing Co. and hemp sales from Manitoba Harvest.
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