Debra Borchardt
Cannabis company Tilray Brands Inc. (Nasdaq: TLRY) (TSX: TLRY) continued to expand its alcohol footprint by acquiring eight beer and beverage brands from Anheuser-Busch (NYSE: BUD) in an all-cash deal.
Tilray announced on Monday that it would buy:
- Shock Top
- Breckenridge Brewery
- Blue Point Brewing Co.
- 10 Barrel Brewing Co.
- Redhook Brewery
- Widmer Brothers Brewing
- Square Mile Cider Company
- HiBall Energy
Tilray said in its presentation that its goal is to become a top 10 U.S. brewer, and it expects craft beer pro forma revenue of $250 million. Tilray also wants to be first to market when the U.S. legalizes cannabis-infused beverages using THC and not just hemp beverages.
“Today’s announcement 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,” Irwin Simon, chairman and CEO, Tilray Brands, said. “… 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.”
The deal includes four production facilities in:
- Portland, Oregon
- Bend, Oregon
- Littleton, Colorado
- Patchogue, New York
It also added eight brewpub locations in:
- Seattle
- Two locations in Bend
- Portland
- Boise
- Littleton
- Breckenridge, Colorado
- Patchogue
In addition to owning the brands, the deal gives Tilray long-term distribution relationships through the Anheuser-Busch-owned and Anheuser-Busch partner distributors, providing national access across all major channels.
Tilray is currently the number nine brewer in the U.S. and number 18 in overall brewing companies.
THC Drinks
“Leveraging the deep CPG expertise of Tilray’s leadership team and acquisition integration track record, we intend to drive both revenue and cost synergies, while significantly expanding national distribution to coveted markets across the U.S. and internationally,” Simon continued.
“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.”
