In a strategic move to diversify its holdings, Canadian cannabis giant Tilray Brands has announced its acquisition of eight prominent beverage brands from Anheuser-Busch, a subsidiary of AB InBev, for a total cash consideration of $85 million.
The newly acquired brands include well-known names such as Breckenridge Brewery, Shock Top, and Blue Point Brewing Co. This acquisition marks a significant expansion of Tilray's alcohol portfolio, already a major player in the craft brewing industry in the United States.
The agreement covers not only the brands themselves but also their associated breweries, brewpubs, and current employees. This all-cash transaction reflects Tilray's commitment to further strengthen its presence in the beverage market.
The deal is set to close by the end of September, pending regulatory approvals. Following the acquisition, Tilray is poised to triple its beer sales volume, securing a 5% market share and positioning itself as the fifth-largest craft brewer in the United States.
Tilray's CEO, Irwin Simon, expressed enthusiasm about the acquisition, emphasizing its significance in enhancing the company's standing within the U.S. craft brewing market. Simon also indicated that Tilray has an eye on the future potential of the THC beverage market in the U.S., with plans to leverage its extensive distribution network and brand portfolio to include THC-infused products upon federal cannabis legalization.
The acquisition underscores Tilray's commitment to diversification and expansion, propelling the company towards a multi-dimensional market presence. Tilray already owns Breckenridge Distillery and Happy Flower CBD sparkling non alcoholic cocktails, in addition to its existing craft brewery holdings.
Shares of Tilray (TLRY) are publicly traded on both the Nasdaq and the Toronto Stock Exchange. This strategic move is expected to generate considerable interest and anticipation within the industry and among investors.