In a bold strategic move, the world’s largest cannabis company, Tilray Brands, has struck a deal to acquire eight beer and beverage brands from the brewing magnate Anheuser-Busch.
This will position Tilray it as the fifth-largest craft brewer and fifteenth-largest overall brewer in the United States.
The acquisition of Anheuser-Busch, priced at $85 million in cash, reflects a vision that Tilray’s President, Irwin D Simon, conceptualised a mere three years ago.
Back then, following the merger of Canadian cannabis giants Aphria and Tilray, he envisaged Tilray Brands spearheading the integration of the cannabis and alcohol industries in the US.
Speaking to Forbes in 2022, Simon emphasised, “I very much want us to be a branded consumer products company, focusing on adult-use cannabis, medical cannabis, the beer category, the spirits category, and where it makes sense, infused foods. We’re charting a course that no other cannabis company has dared to.”
This acquisition is set to seamlessly integrate with Tilray’s existing brands such as SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company, and Green Flash Brewing Company.
The company’s portfolio will further be enhanced with the additions of Breckenridge Distillery and Happy Flower CBD sparkling non-alcoholic cocktails.
Shock Top, created in 2006 as Anheuser-Busch’s response to Molson Coors’ Blue Moon, stands out as a noteworthy acquisition.
Its vast national footprint and rotating seasonal lineup of 12-packs promise significant potential for Tilray.
Ty Gilmore, President of U.S. Beer at Tilray Brands, is optimistic about this expansion, expecting their beer business to soar from 4 million cases to 12 million annually. He notes, “Our intention is to innovate further, create impactful retailer partnerships and broaden our reach, especially in regions like the Pacific Northwest and California.”
Upon US federal cannabis legalisation, Tilray Brands eyes potential expansion into THC-based products, hoping to make the most of its wide distribution network and its revered range of beverage and wellness brands.
With these acquisitions, Tilray Brands projects a revenue of $250 million, a much-needed boost in the backdrop of a sluggish Canadian cannabis market.
