Canadian Cannabis Company Aphria Agrees to Buy SweetWater Brewing Co. for $300 Million

Ontaria, Canada-based Aphria Inc. has announced its plans to purchase Atlanta, GA's Sweetwater Brewing Co. for a reported $300 million.

This deal will mark the first major deal in the cannabis industry involving craft beer and brewing, and it will allow the Canadian cannabis company a chance to enter into the U.S. market.

“Our 420 brand offerings and SweetWater 420 Fest complement Aphria’s cannabis business and create mutual opportunities for accelerated expansion into other cannabis- and beverage-related products in the U.S. and Canada,” Sweetwater founder and Chief Executive Freddy Bensch said in Wednesday’s announcement.

Indeed, SweetWater has long conveyed a "420-friendly" vibe with its marketing and branding with beers such as 420 Extra Pale Ale and its 420 G13 Strain Series, which is touted for its highly "weedy" aromatics.

SweetWater was founded in 1997, and Bensch will stay on as the company's CEO following the acquisition. SweetWater is the largest brewery in Georgia and was ranked as the 14th-largest craft brewery in the United States by the Brewers Association per 2019 sales data.

“Our strong balance sheet and access to capital have enabled us to enter the U.S. through this strategic and accretive acquisition. We will establish and grow our U.S. presence through SweetWater’s robust, profitable platform of craft brewing innovation, manufacturing, marketing and distribution expertise. At the same time, we will build brand awareness for our adult-use cannabis brands, Broken Coast, Good Supply, Riff and Solei, through our participation in the growing $29 billion craft brew market in the U.S. ahead of potential future state or federal cannabis legalization,” said Aphria CEO Irwin Simon.