Irwin Simon, CEO of Canadian cannabis company Aphria, is looking for additional opportunities to acquire brands in the consumer goods space, hoping to grow beyond cannabis.
“There are a lot of 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 turn it into cannabis once legalization occurs,” Simon said in an interview with CNBC’s “Closing Bell” Monday.
Simon previously founded the consumer products company Hain Celestial Group, which specializes in natural and organic foods, beverages and personal care items. He remained with the company for more than 25 years, serving as CEO and president.
“Without knowing when [cannabis] legalization occurs in the United States, I want to continue to acquire certain businesses like Sweetwater, like Manitoba Harvest, which can intervene in the cannabis world once legalization happens with big margins, great growth and great distribution for us, ”he said Simon.
The company acquired Sweetwater, an independent craft brewery in the United States, in November. A month later, Aphria announced plans to merge with another Canadian cannabis company, Tilray, along with its Manitoba Harvest hemp consumer product brand, to form the largest revenue cannabis company.
Shares of the company closed up 14% to $ 13.95 on Monday, after the company reported that coronavirus blockages in parts of Canada and Germany affected sales of its products in its third fiscal quarter. Revenue fell from the second quarter to the third quarter, but was higher year-over-year.
During the three months ended Feb. 28, Aphria reported a net loss of C $ 361 million in revenue of C $ 153.6 million.
“In the U.S., we had a solid first full quarter of Sweetwater’s contribution, even with lower local sales compared to the previous year’s quarter, as many establishments in the food industry still operated with limited capacity, “Simon said in a press release.
Aphria shareholders are scheduled to vote on the Tilray deal on Wednesday. Shares of Tilray closed Monday at $ 17.19, down 13%.