Cannabis company Tilray Brands Inc. on Monday acquired eight beer and beverage brands from Anheuser-Busch, including Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company, and HiBall Energy.
The deal includes current employees, breweries, and brewpubs associated with the brands and is expected to generate pro forma revenue of $250 million.
The expected sales volume of the acquired brands will elevate Tilray Brands to the fifth largest craft beer business position in the U.S., up from the ninth, with current brands SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company, and Green Flash Brewing Company.
In a statement, Irwin D. Simon, chairman and CEO of Tilray Brands, said the deal solidifies the company’s “national leadership position and share in the U.S. craft brewing market and marks a major step forward” in its 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.” — Simon in a press release
Simon added that once the U.S. legalizes cannabis federally, the company will use its “leadership position in the craft beer industry” and “wide distribution network and portfolio of beloved beverage and wellness brands to include THC-based products and maximize all commercial opportunities.”
Ty Gilmore, president for U.S. Beer at Tilray Brands, said, with the transaction, the company’s beer business “is expected to triple in size from 4 million cases to 12 million cases annually.”
“Looking ahead,” Gilmore said, “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.”
The purchase price will be paid in all cash and the transaction is expected to close in 2023.
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