Cannabis Company Tilray Acquires 8 Anheuser-Busch Beverage Brands for $85 Million
Canadian cannabis producer Tilray Brands is making a significant move to diversify its portfolio by acquiring eight beverage brands from Anheuser-Busch. The deal, valued at $85 million in cash, will see Tilray taking ownership of brands such as Blue Point Brewing, Breckenridge Brewery, and Shock Top. This acquisition adds to Tilray's existing presence in the craft brewing industry and solidifies its position as a key player.
The purchase includes not only the brands but also encompasses current employees, breweries, and brewpubs associated with these labels. The transaction is anticipated to be finalized by the end of September, subject to regulatory approvals. Tilray's expansion into the beverage sector underscores its strategic approach to broaden its offerings and strengthen its market position.
After the acquisition, Tilray's beer sales volume is expected to experience a substantial boost, potentially tripling its output. As a result, the company is poised to become a prominent player in the U.S. craft brewing market, ranking among the top craft brewers. Bart Watson, Chief Economist at the Brewers Association, indicates that Tilray might even secure the fourth spot on the list.
“Upon federal cannabis legalization,” Simon said, “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.”
Tilray's CEO, Irwin Simon, highlighted the significance of this acquisition, stating that it not only enhances the company's national leadership but also marks a significant step forward in its diversification strategy. Simon also revealed that Tilray has an eye on the THC beverage market in the U.S., aiming to leverage its market position, distribution network, and brand portfolio to explore opportunities in this emerging sector.
The acquisition is a strategic move by Tilray to establish a stronger foothold in both the alcohol and potential THC beverage markets, setting the stage for future growth and expansion.