Cannabis company Tilray Brands, Inc. (Nasdaq | TSX: TLRY) is leaning into craft beers after buying 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 Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company, and HiBall Energy.
Tilray said in its presentation that its goal is to become a top ten U.S. brewer. The company also said it expects craft beer pro forma revenue of $250 million. It also wants to be first to market when the U.S. legalizes cannabis-infused beverages using THC and not just hemp beverages.
Irwin D. Simon, Chairman and CEO, Tilray Brands, said, “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. 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.”
The company also gets four production facilities across the U.S.: Portland, OR, Bend, OR, Littleton, CO and Patchogue, NY in the deal. Plus, it will own eight brewpub locations: Seattle, WA, Bend, OR (2), Portland, OR, Boise, ID, Littleton, CO, Breckenridge, CO, and Patchogue, NY.
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
Mr. Simon continued, “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.” (Full Story)