USA: Tilray Brands completes acquisition of eight beer and beverage brands from AB InBev
Cannabis company Tilray Brands, Inc. said it has closed its all-cash previously-announced acquisition of eight beer and beverage brands from Anheuser-Busch, including the breweries and brewpubs associated with them, Benzinga reported on October 2.
The acquired businesses 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 U.S. craft beer market is projected to generate approximately $30 billion in revenue in 2023 and grow at a CAGR of approximately 7.2% throughout the year. Combined with the pro forma sales revenue from the acquired businesses, Tilray Brands is expected to become the 5th largest craft beer business in the U.S. market this year, up from the 9th, with its current brands SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company, and Green Flash Brewing Company.
“With this EBITDA accretive transaction, Tilray has acquired a stellar lineup of eight craft beer and beverage brands that both solidify our leadership in the craft beer industry and strengthen our business in the expansive beverage sector in which we see tremendous opportunity to reinvigorate innovation across many categories including non-alcoholic beverages, energy, and nutritional drinks,” stated Irwin D. Simon, Tilray's chairman and CEO.
“Tilray’s diversified growth strategy is a purposeful and strategic adaptation to current market realities given delayed federal cannabis legalization in the U.S. When federal cannabis legalization does happen, we believe that Tilray will be ready to dominate as a leading global CPG company with the resources, infrastructure and operations, distribution, brands, sales, and marketing know-how to lead the revolution of cannabis CPG in the mainstream,” said Simon.
Previously, Bud Light, suffered an anti-trans backlash, after collaborating with trans activist Dylan Mulvaney. This affected sales of the normally top-selling beer, putting pressure on the parent company's shares. The controversy seems to have calmed down and the company’s shares improved after BofA Securities upgraded its stock.
Tilray is projected to generate craft beer pro-forma revenue of $250 million through this acquisition.
In addition to Tilray Brands’ craft beer portfolio, it also owns Breckenridge Distillery, the award-winning brand and the World’s Best Blended Whisky, Truss Beverage Co. non-alcoholic cannabis-beverages and Happy Flower CBD sparkling non-alcoholic cocktails.
Tilray shares were trading 1.26% higher at $2.42 per share during Monday, October 2nd’s pre-market session.
Torna
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