Tilray Brands Announces Definitive Agreement to Acquire Eight Beer and Beverage Brands from Anheuser-Busch, Strengthening Its Position in Craft Brewing

Tilray Brands, Inc., a prominent global cannabis-lifestyle and consumer packaged goods company, is making significant strides in the beverage alcohol market with its recent announcement of a definitive agreement to acquire eight well-established beer and beverage brands from Anheuser-Busch (NYSE: BUD). This strategic move is expected to further diversify Tilray’s growing U.S. beverage alcohol segment and enhance its position in the craft brewing industry.

The acquisition includes some iconic beer brands with a strong consumer following, such as 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 transaction encompasses not only the brands but also the current employees, breweries, and brewpubs associated with these revered names in the industry.

With the purchase price set to be paid entirely in cash, the deal is anticipated to close in 2023, pending the satisfaction of customary closing conditions. Upon completion, Tilray will solidify its position as the 5th largest craft beer business in the U.S., a significant leap from its previous ranking at 9th. This acquisition will complement Tilray Brands’ existing portfolio, which includes SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company and Green Flash Brewing Company.

Irwin D. Simon, Chairman and CEO of 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.”

Mr. Simon continued, “Leveraging the deep CPG [consumer packaged goods] 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.” 

Andy Thomas, President of The High End at Anheuser-Busch, said, “Tilray Brands reached out to us early this year with interest in purchasing these brands and breweries, and since then, we’ve had many positive conversations that led to today’s announcement. The talented people behind these brands and breweries, along with our significant investments in them over the years, have positioned them for a bright future with Tilray Brands. We are committed to working with Tilray Brands over the coming months to ensure this is a smooth transition for the people who are working every day to get these amazing beers and beverages to consumers across the U.S.” 

Ty Gilmore, President of U.S. Beer at Tilray Brands, added, “With this transaction, our beer business is expected to triple in size from 4 million cases to 12 million cases annually. 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.”

Tilray’s Acquisition of Notable Craft Breweries Sends Ripples Throughout Industry

The inclusion of these renowned beer and beverage brands in Tilray’s portfolio brings numerous advantages, including:

1. Strengthening and Expanding Craft Brewing Leadership: The acquired brands boast a loyal consumer base, providing an excellent opportunity for growth and synergy in both alcohol and non-alcoholic beverage segments. The projected craft beer pro forma revenue is expected to reach $250 million, further boosting Tilray’s financial standing in the market. Moreover, the distribution relationships with Anheuser-Busch will enhance Tilray’s nationwide footprint.

2. Modern Facilities and Innovation Opportunities: Tilray will gain access to four state-of-the-art production facilities located in Portland, OR, Bend, OR, Littleton, CO and Patchogue, NY. Additionally, there are eight vibrant brewpub locations in Seattle, WA, Bend, OR (2), Portland, OR, Boise, ID, Littleton, CO, Breckenridge, CO, and Patchogue, NY. These facilities will not only expand the company’s manufacturing capacity but also provide ample room for innovation and commercial growth.

3. Iconic Brands with Dedicated Followers: Each of the acquired brands has a unique story and loyal customer base. Shock Top, for instance, is an award-winning Belgian-style wheat ale with a delightful blend of coriander spice and citrus fruits. Breckenridge Brewery, founded in Colorado, offers a range of balanced and approachable beers, earning accolades at prestigious beer competitions. Similarly, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company, and HiBall Energy all bring their distinctive flavors and innovation to the table.

Overall, this acquisition marks a significant milestone for Tilray Brands as it continues to stride ahead in the U.S. craft beer market and strengthens its presence in the beverage alcohol industry. With the expected closing of the transaction in 2023, Tilray is set to make waves in the brewing world and delight consumers with its diverse range of high-quality beer and beverage offerings.