Tilray Brands Acquires Eight Beverage Brands from Anheuser-Busch in $85 Million Deal

LOS ANGELES– Canadian cannabis producer Tilray Brands has announced an $85 million all-cash acquisition of eight beverage brands from Anheuser-Busch, including well-known breweries such as Breckenridge and Shock Top. The deal, expected to close by the end of September. The acquisition marks a significant step in Tilray’s diversification strategy, positioning the Canadian cannabis producer as the fifth-largest craft beer business in the U.S.

The acquired brands are:

• Blue Point Brewing Co.
• Breckenridge Brewery
• Redhook Brewery
• Shock Top
• 10 Barrel Brewing Co.
• Widmer Brothers Brewing
• Hiball Energy
• Square Mile Cider Co.

These brands will join Tilray’s existing portfolio of U.S. craft brewers, including Alpine Beer Co., Green Flash Brewing Co., Montauk Brewing Co., and SweetWater Brewing Co.

Upon closing the deal, Tilray expects to triple its beer sales volume and rank fifth among U.S. craft brewers with a 5% market share. Some industry experts even suggest that Tilray might rank fourth.

The acquisition comes at a time when Anheuser-Busch faces challenges surrounding Bud Light’s collaboration with trans activist Dylan Mulvaney, which has impacted sales. Andy Thomas, president of The High End at Anheuser-Busch, expressed confidence in the new arrangement, stating that the brands and breweries are positioned for a “bright future with Tilray Brands.”

Tilray’s chairman and CEO, Irwin D. Simon, highlighted the acquisition’s role in strengthening the company’s leadership in the U.S. craft brewing market and advancing its diversification strategy.

The company’s expansion into the alcohol sector aligns with broader ambitions, including potential future opportunities in the THC beverage market in the U.S. “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,” CEO Simon stated.

Tilray’s share prices experienced a sharp rise following the news, with an increase of more than 30% on the Nasdaq and nearly 25% on the Toronto Stock Exchange as of Tuesday afternoon.

While some critics have questioned Tilray’s diversification into non-cannabis brands, Owen Bennett, the senior vice president of equity research at Toronto-based financial services firm Jefferies, emphasized the long-term benefits of the acquisition, giving the company a “buy” rating.

In summary, Tilray’s acquisition of the eight beverage brands from Anheuser-Busch represents a significant milestone in the company’s growth and diversification strategy. By expanding its presence in the U.S. craft beer market, Tilray is positioning itself as a major player in the beverage industry, with potential future opportunities in the THC beverage market. The deal underscores the evolving landscape of the cannabis industry and the strategic moves companies are making to capitalize on emerging opportunities across different sectors.