Tilray Brands Acquires Eight Beer & Beverage Brands from Anheuser-Busch, Elevating Its Position in the U.S. Craft Beer Industry
New York, August 7, 2023 — Tilray Brands, Inc. (“Tilray Brands” or “the Company”), a prominent global cannabis-lifestyle and consumer packaged goods company listed on Nasdaq and TSX, has unveiled its definitive agreement to acquire a portfolio of eight renowned beer and beverage brands from Anheuser-Busch, an announcement that marks a significant milestone in Tilray’s strategic growth plan. Pending the fulfillment of customary closing conditions, the acquisition will include brands such as 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 is slated to be completed in 2023 and will be executed through an all-cash deal.
With this acquisition, Tilray is poised to solidify its foothold in the U.S. craft beer sector, anticipating a climb to the 5th spot among the nation’s craft beer brewers by sales volume, up from its prior 9th position. This expansion is a part of Tilray’s broader strategy to diversify its growth avenues and capitalize on the burgeoning craft beer market. This move is projected to position Tilray as a key player in the industry, wielding a 5% share of the craft beer market.
This acquisition is expected to drive substantial growth, with pro forma revenue for Tilray’s U.S. beverage alcohol portfolio, combined with the newly acquired brands, estimated to reach approximately $300 million. Notably, this transaction is projected to be accretive to EBITDA, reinforcing Tilray’s competency in executing its diversified growth strategy effectively.
Irwin D. Simon, Chairman and CEO of Tilray Brands, expressed his enthusiasm for this strategic move, asserting that it will both bolster the company’s prominence in the craft brewing market and serve as a pivotal step toward its diversification goals. Simon highlighted the iconic status and consumer loyalty associated with the acquired brands, emphasizing their track record of producing award-winning products and exhibiting robust growth potential. He also underscored Tilray’s commitment to propelling innovation in the U.S. craft beer industry, further fueling the expansion of its consumer base.
In the wake of federal cannabis legalization, Tilray Brands envisions leveraging its established leadership position, expansive distribution network, and portfolio of beloved beverage and wellness brands to potentially include THC-based products and explore an array of commercial opportunities in the evolving landscape.
Tilray Brands is renowned for its deep expertise in consumer packaged goods and has a history of effectively integrating acquisitions. The company is set to capitalize on revenue and cost synergies, and it aims to strengthen its distribution footprint across the U.S. and international markets.
Ty Gilmore, President of U.S. Beer at Tilray Brands, noted that this acquisition is projected to triple the company’s beer business, taking its annual cases from 4 million to 12 million. The company plans to leverage the potential of these iconic brands through innovation, partnerships with retailers, and expanded distribution into key markets like the Pacific Northwest and California.
About Blue Point Brewing Company: A Legacy of Craft and Innovation
Founded in 1998 on Long Island, New York, Blue Point Brewing Company has flourished into one of the state’s largest and most innovative breweries. It has played a pivotal role in the local craft beer movement, crafting a portfolio of easy-drinking and inventive brews. Blue Point’s product lineup features signature offerings such as Toasted Lager, Hoptical Illusion, Imperial Sunshine, and Pinstripe Pils, among others.
Blue Point’s commitment to quality and innovation is underscored by its impressive awards record, with accolades garnered from prestigious competitions such as the World Beer Cup, the Great American Beer Festival, and the New York Craft Beer Competition. The brewery’s emphasis on both tradition and creativity has resonated with consumers, and its diverse range of flavors has contributed to its loyal following.
In conclusion, Tilray Brands’ acquisition of eight esteemed beer and beverage brands from Anheuser-Busch is set to make a significant impact on the U.S. craft beer industry. The move not only bolsters Tilray’s position in the market but also underscores the company’s commitment to innovation, consumer satisfaction, and strategic growth. With a portfolio that combines established favorites and cutting-edge offerings, Tilray Brands is well poised to shape the future of the U.S. craft beer landscape.
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