Tilray Brands is about to add to its beer and beverage portfolio.
The Canadian-based cannabis producer on Tuesday announced it has entered a definitive agreement to acquire eight beer and beverage brands from St. Louis-based Anheuser-Busch, the largest brewing company in the U.S.
Tilray will acquire the eight AB brands for $85 million, to be paid all in cash. The transaction is expected to close in 2023.
The eight beer and beverage brands Tilray will acquire are Shock Top, Breckenridge Brewery, Blue Point Brewing Company, Redhook Brewery, Widmer Brothers Brewing, 10 Barrel Brewing Company, Square Mile Cider Company, and HiBall Energy. The acquisition also includes the brands’ current employees, breweries and brewpubs.
“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,” Tilray Chairman and CEO Irwin Simon said in a news release. “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.
“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. 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 added.
With its acquisition of the eight AB brands, Tilray expects to become the fifth largest craft brewer in the U.S., up from ninth, in terms of expected sales volume. The company also owns beer brands SweetWater Brewing Company, Montauk Brewing Company, Green Flash Brewing Company, and Alpine Beer Company.
Aside from its beer segment, Tilray also owns Breckenridge Distillery and Happy Flower CBD sparkling non-alcoholic cocktails.
“With this transaction, our beer business is expected to triple in size from 4 million cases to 12 million cases annually,” Tilray President of U.S. Beer Ty Gilmore said. “Looking ahead, we will further capitalize on the potential of these brands through product innovation, retailer partnerships and expanded distribution into key markets, including the Pacific Northwest and California.”
