Tilray Inc (NASDAQ:TLRY) Q3 2019 Earnings Conference Call - Final Transcript
Nov 12, 2019 • 05:00 pm ET
[Operator Instructions] And our first question is from Vivien Azer with Cowen and Company. Your line is open.
Good evening. This is Steve Schneiderman sitting in for Vivien tonight. Let's start off on Fluent. Can you talk a little bit more about the opportunity you are seeing with CBD Beverages specifically within the market? And in addition, can you provide any color regarding the delay on the rollout for THC beverages?
Sure. Yes. So in the quarter, we announced the name Fluent as well as the CEO. And the team at Fluent has been working since we announced the partnership with AB InBev last December. They've been working on developing formulations form factors brands and packaging for the products that we will or they will launch in December. I believe that they will announce -- showcase their products before the end of the month. They've been outselling them to the various provincial buyers crown corporations throughout Canada. They've been showing the products to those buyers and expect -- we expect to ship those products December 17. The CBD beverages became a focus for them based on a lot of market research that they did. And so they'll launch those products for sale to adult consumers in Canada in December. They continue to do research on THC beverages and they expect to launch them sometime next year.
Okay. That's great. Thanks very much, Brendan. On Portugal, I want to go back to this real quick. On the GMP certification staff, I understand that the finished manufacturing license you expect by the end of the year. Correct me if I'm mistaken but wasn't there another license you were waiting on in order to be able to have full access to adult product suite? And also based on what you are licensed for today versus what you hope to be licensed for by the end of the year what percentage of your product mix is available today versus what you're waiting on?
Yes. So currently obviously we have been investing in Portugal since 2000 -- I made my first trip there in 2015. Signed an MOU with the government in 2016 and started buying property and designing a facility in 2017. We planted -- built up a building in 2018 and put our first plants in our greenhouse in November December of last year. And so we have been harvesting products for almost a year now. In Q3 we announced our first export it was an EUR3 million $3.3 million bulk export from Portugal to Germany. So it's always exciting to generate that first dollar revenue from a project like that and we are looking forward to significantly increasing revenue from Portugal in Q4 and throughout 2020. There are three -- like three main steps in the EU GMP certification. Those certifications are issued by a regulator in Portugal informant. The first was issued. So GMP part two which enables us -- well that's what enabled us to ship that GMP flower from Portugal