By Gary Symons
TLL Editor in Chief
The cannabis company Tilray Brands has agreed to buy out eight beer and beverage brands from Anheuser-Busch, owner of Budweiser.
The move is part of an on-again, off-again relationship between the beer company and the pot company, as parent company AB-InBev was formerly an investor and partner with Tilray.
AB-InBev is the world’s leading brewer, and shortly after Canada legalized cannabis in 2018, it entered into a partnership with Tilray, which at the time was headquartered in the British Columbia city of Nanaimo. AB-InBev also invested $50 million in the company, as the partners planned to work on a variety of CBD or THC-infused beers and other beverages. Tilray has already produced a number of these types of beverages, such as the Broken Coast Lager shown in the above photo.
However, the public showed limited interest in cannabis-infused beverages, and so the companies quietly terminated that partnership in January, 2022.
Tilray, which is now headquartered in New York, never lost its interest in the beverage market, and this week the company has agreed to purchase eight of Anheuser-Busch’s craft brewing brands. Those include: 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 includes current employees, breweries and brewpubs associated with these brands. The purchase price will be paid in all cash and the transaction is expected to close before the end of the year.
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“These beer and beverage brands possess the hallmarks of strong consumer loyalty and further diversify Tilray’s growing U.S. beverage alcohol segment,” Tilray said in a statement. “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. Tilray Brands also owns Breckenridge Distillery, the award-winning spirits brand and the World’s Best Blended Whisky, and Happy Flower CBD sparkling non-alcoholic cocktails.
“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,” said Irwin D. Simon, Chairman and CEO of Tilray Brands. “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.”
The purchase comes at a time when beer sales have been in decline, but craft beers have generally shown growth over mass produced brands. Simon says Tilray believes the sector will turn around, and that the purchase positions Tilray for leadership when, or if, cannabis is legalized in the US.
“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,” Simon says. “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,” he added. “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, said the transaction will cause Tilray’s production of beers to increase 300 per cent, from 4 million cases today, to 12 million cases when the deal closes.
“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.”