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.”
