Canada’s THC-infused beverage market is about to get more crowded.

Jones Soda, the beloved soft drink company known for its quirky flavors, said on Tuesday that the arm of its cannabis business, Mary Jones, “has been approved to operate in Ontario, Canada, with additional provinces to follow.” 

“Starting with their THC-infused beverages, the products are currently slated for Ontario availability in Q1 24,” the company said in press release.

Jones is eyeing an additional expansion into other cannabis categories within the Canadian market in collaboration with Tilray Brands, the Canadian cannabis company. The company said in the press release that Tilray handles its manufacturing and distribution in Canada.

“Jones was originally founded in Vancouver, BC. Canada and Tilray are a natural fit for our first international expansion for Mary Jones following the incredible success we’ve had in our U.S. markets,” David Knight, CEO of Jones Soda, said in a statement on Tuesday. “Canada’s recreational cannabis sales increased $466.1M CAD in July, up 1.9 % from June this year. We’re looking forward to bringing Mary Jones to Canada’s THC retailers and consumers.”

Blair MacNeil, President of Tilray Canada, said that the company is “excited to partner with Mary Jones and to produce their one of a kind beverages at our state-of-the-art London, Ontario facility.” 

“The Mary Jones brand has seen enormous success in the United States and we look forward to being a part of their rapid growth in Canada,” MacNeil said. 

Jones will “launch in Ontario with its 10MG THC-sodas in a variety of Famous Jones flavors, including Berry Lemonade, Boot Rear (Root Beer) And Col.Ahhhhh (Cola), uniquely labeled for Canadian cannabis packaging and naming requirements,” the press release said. 

“The sodas use the same pure cane sugar recipe as mainline Jones, adapted for cannabis. Cannabis consumers in Canada can enjoy Mary Jones THC-infused sodas alone, mixed in craft cocktails, floats and much more,” the press release continued. “Mary Jones is also exploring future expansion into other cannabis categories in the Canadian market, bringing the beverage flavors into other product formats.”

The cannabis firm Green Hedge “will support sales and field marketing in Canada for Mary Jones,” according to the press release.

“Infused Beverages are growing at a rapid pace in Canada and around the world, including an increasing number of consumers who are shifting to it over alcohol,” said Andrew von Teichman, CEO of Green Hedge. “It creates a highly lucrative opportunity specifically for Mary Jones craft sodas and syrups. Cannabis consumers in Canada are going to love Mary Jones!”

For Tilray, Tuesday’s announcement marks another significant development within its beverage portfolio. Last year, Tilray acquired eight beer and beverage brands in a deal with Anheuser-Busch. 

Tilray CEO and chairman Irwin D. Simon said at the time that the deal with Anheuser-Busch “both solidifies our national leadership position and share in the U.S. craft brewing market and marks a major step forward in our diversification strategy.” 

“We are excited to work with the teams behind these iconic brands that command great consumer loyalty and have a history of delivering strong award-winning products with tremendous growth opportunities. Tilray is fully committed to invest in and champion the future of the U.S. craft beer industry by fueling new innovation that excites and further accelerates the growth of its consumer base,” Simon said in a statement.

The deal gave Tilray a number of notable brands, including Shock Top, Breckenridge Brewery and Blue Point Brewing Company. It also included 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company, and HiBall Energy.

In his statement at the time, Simon said the move gave Tilray “national distribution to coveted markets across the U.S. and internationally.” 

“In a matter of three years, Tilray has solidified its leadership position in the craft beer industry, and we fully intend to be that change agent that reinvigorates the sector. Upon federal cannabis legalization, we expect to leverage our leadership position, wide distribution network and portfolio of beloved beverage and wellness brands to include THC-based products and maximize all commercial opportunities,” Simon said.

In 2020, Tilray engineered a similar deal, acquiring craft beer company Montauk Brewing.

“Tilray Brands continues to strengthen our U.S. footprint and operations through investments in and growing our portfolio of leading lifestyle CPG brands that resonate powerfully with consumers,” Simon said at the time.

“Montauk Brewing is an iconic brand with leading market share and distribution in the northeast. Tilray Brands intends to leverage SweetWater’s existing nationwide infrastructure and Montauk Brewing’s northeast influence to significantly expand our distribution network and drive profitable growth in our beverage-alcohol segment. This distribution network is part of Tilray’s strategy to leverage our growing portfolio of U.S. CPG brands and ultimately to launch THC-based product adjacencies upon federal legalization in the U.S.”

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