Tilray Brands Inc.’s diversification into the beer business paid off in the fiscal second quarter, even as the company is poised to start planting vegetables and fruit to monetize some of its unneeded cannabis cultivation space in Quebec.

Some alcohol companies have gotten into cannabis to offset the drug’s increasing cannibalization of alcohol among young drinkers. Tilray has done the opposite, acquiring craft beer brands to offset cannabis woes such as ongoing competition from the illicit market, low wholesale prices and an oversaturated Canadian market.

Tilray expanded its position in the craft brew industry, completing the acquisition of Bend’s 10 Barrel Brewing Co. and seven other beer brands from Anheuser-Busch that it had announced over the summer, making it the fifth-largest craft brewer in the U.S.

Net revenue from the company’s alcohol business increased 117% to $47 million in the second quarter.

“We feel there wasn’t a focus on these brands previously, and with us focusing on them, we’ll see great growth opportunities,” Tilray Chief Executive Officer Irwin Simon said in a phone interview. The company plans to make Shock Top, a Belgian-style beer, a national brand in the U.S., he added. Other acquired brands include Blue Point Brewing Co. and Breckenridge Brewery.

Simon said the drinks portfolio also positions Tilray to get into THC beverages if U.S. cannabis laws change. However, if cannabis is rescheduled rather than descheduled — something seen as a more likely scenario — it would mean cannabis is treated like a medicine, and still federally illegal for recreational use. Simon said Tilray could benefit even in that scenario, possibly attracting more institutional investors. The company also has a medical cannabis business.

The stock fell 4.5% at 9:42 a.m. Tuesday in New York. Tilray stock fell 15% in 2023, while the Nasdaq Composite Index rose 43%.

Tilray’s overall quarterly net revenue grew around 34%, more than expected, and it reiterated 2024 guidance. It had earlier announced plans to start growing vegetables in Quebec, where there’s big demand for those agricultural food commodities. Simon said its Quebec facility is ready to start growing strawberries, cucumbers, eggplants — and maybe tomatoes — starting around the middle of this month.