Tilray Brands Purchases Eight Breweries from Anheuser-Busch

In somewhat surprising news earlier this week, Tilray Brands, the cannabis and craft beer company, is set to purchase eight craft breweries from Anheuser-Busch InBev. This list of breweries includes a few from the Northwest, including Widmer Brothers Brewing, 10 Barrel Brewing, Redhook Brewery, and Square Mile Cider. Also joining Tilray Brands is Shock Top, Breckenridge Brewery, and Blue Point Brewing.

It is being reported that Tilray Brands will pay $85 million in cash to A-B InBev for the eight breweries. This has to be a loss for A-B InBev from what they paid for these breweries. According to Brewbound, this sale is expected to close by the end of September 2023. The transaction includes all entities associated with these eight brands, including the production breweries, eight brewpubs and all of its employees.

Tilray Brands is not brand new to craft beer as it currently owns SweetWater Brewing, Alpine Beer, Green Flash Brewing, and Montauk Brewing. Its entry into beer is fairly recent and one that allows this cannabis company to diversify as it waits for the U.S. to ultimately legalize the drug across the country. Since there is no guarantee in this happening, the craft beer business in the U.S. seems to be a bit more appealing to this company.

In 2020, Tilray Brands acquired Atlanta’s SweetWater Brewing. Then a year later Green Flash and Alpine entered the picture. This same year SweetWater Brewing opened a location in Fort Collins, Colorado. A year later in November 2022, the New York based Montauk Brewing became part of Tilray Brands.

This latest acquisition is a strategic one for Tilray Brands as they will soon have brewery locations all across the U.S., including locations that can help in the synergy of its existing operations. It also enhances its existing breweries in Georgia, Colorado, and New York with the addition of the Pacific Northwest.

“With this transaction, our beer business is expected to triple in size from 4 million cases to 12 million cases annually,” stated Ty Gilmore, President, U.S. Beer at Tilray Brands. “ Looking ahead, we will further capitalize on the potential of these brands through product innovation, retailer partnerships and expanded distribution into key markets, including the Pacific Northwest and California.”

In Portland, Oregon, Widmer Brothers Brewing already brews select beers for both 10 Barrel Brewing and Redhook Brewery. It is also where Square Mile Cider is produced.

The other acquisitions in Colorado and New York will also bolster Tilray’s production. The addition of Breckenridge Brewery will strengthen its SweetWater Brewing ties in the state as will its existing ownership of Breckenridge Distillery that Tilray Brands purchased in December 2021 for $102.9M. Over the course of the past few years, Breckenridge Distillery has been collaborating with Breckenridge Brewery on a few whiskies. Now this partnership will make more financial sense.

Then out in New York, both Montauk Brewing and Blue Point Brewing will likely be able to utilize its close proximity to its fullest. There’s a huge population base there that Tilray will likely go after with its two regional beer brands.

The outlier in this entire acquisition is Shock Top, the “brewery” that A-B created to compete against Blue Moon. For the most part, Shock Top had one beer, a Belgian White, but has also offered a few seasonal beers from time to time. Most recently Shock Top brought back its Twisted Pretzel. It’ll be interesting to see where this brand ends up, both in its product placement and where it is brewed.

Tilray Brands has seen positive earnings as of late. It closed its year with a Q4 net revenue of $184 million. This represented a 20% growth year over year with a $627 million of net revenue for FY2023. This acquisition is expected to place Tilray Brands as the 5th largest craft beer brewer in the U.S., up from its current 9th placement, with about a 5% craft beer market share. It will also likely bring its craft beer pro forma revenue to about $250 million, not too bad for a company that has three years of experience in the category.

“Today’s announcement both solidifies our national leadership position and share in the U.S. craft brewing market and marks a major step forward in our diversification strategy,” stated Irwin D. Simon, Chairman and CEO, Tilray Brands, on Monday. “We are excited to work with the teams behind these iconic brands that command great consumer loyalty and have a history of delivering strong award-winning products with tremendous growth opportunities. Tilray is fully committed to invest in and champion the future of the U.S. craft beer industry by fueling new innovation that excites and further accelerates the growth of its consumer base.”

Mr. Simon continued, “Leveraging the deep CPG expertise of Tilray’s leadership team and acquisition integration track record, we intend to drive both revenue and cost synergies, while significantly expanding national distribution to coveted markets across the U.S. and internationally. In a matter of three years, Tilray has solidified its leadership position in the craft beer industry, and we fully intend to be that change agent that reinvigorates the sector. Upon federal cannabis legalization, 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.”

This deal will give Tilray Brands other added strength in the beer segment as it will hand them over brands with an established portfolio and customer base. It will also expand its capabilities in alcohol and non-alcoholic beverages. Plus, the distribution arrangements with A-B wholesalers across the U.S. is a positive one.

Tilray Brands will land four production facilities across the U.S. in Portland, OR, Bend, OR, Littleton, CO and Patchogue, NY. It will also acquire eight vibrant brewpub locations in Seattle, WA, Bend, OR (2), Portland, OR, Boise, ID, Littleton, CO, Breckenridge, CO, and Patchogue, NY. The deal also provides additional manufacturing capacity and innovation capabilities for commercial expansion opportunities across all of its brands.

“Tilray Brands reached out to us early this year with interest in purchasing these brands and breweries, and since then, we’ve had many positive conversations that led to today’s announcement,” stated Andy Thomas, President, The High End at Anheuser-Busch. “The talented people behind these brands and breweries, along with our significant investments in them over the years, have positioned them for a bright future with Tilray Brands. We are committed to working with Tilray Brands over the coming months to ensure this is a smooth transition for the people who are working every day to get these amazing beers and beverages to consumers across the U.S.”

The craft brands that remain at A-B InBev are Goose Island, Elysian, Kona Brewing, Four Peaks, Golden Road, Devils Backbone, Karbach, Wicked Weed, and Omission. One brand that has not been mentioned is Virtue Cider, the Michigan based cidermaker founded by Greg Hall and then sold to Goose Island, his former employer, will now see Hall taking back ownership of the brand.

Here’s a rundown on the eight breweries that Tilray Brands has acquired from A-B InBev.

• Shock Top is an award winning traditional Belgian-style wheat ale that was originally introduced in 2006 as a seasonal offering. After taking home the gold medal at the North American Beer Awards in the Belgian White category, it became a year-round offering. Shock Top Belgian White is a spiced wheat ale brewed with coriander spice and the peels of three different citrus fruits: orange, lemon, and lime. This uniquely crafted ale is unfiltered to create a naturally cloudy brew with a light golden color and a smooth, refreshing finish. Shock Top also has a seasonal line-up that excites consumers every year, led by the Twisted Pretzel Wheat, delivering delicious taste and aroma of bakery-fresh pretzels.
• Breckenridge Brewery opened its doors in 1990 in the ski town of Breckenridge, Colorado and has grown into one of the most recognized craft breweries in the U.S. Today, Breckenridge Brewery has two locations to visit – the original brewpub in Breckenridge and its renowned Farm House restaurant in Littleton, CO, outside Denver. With a focus on balanced, approachable, and interesting beer, the brewery’s portfolio includes Avalanche Amber Ale, Palisade Peach Wheat, Juice Drop Hazy IPA, Funslinger Lager, Vanilla Porter, Hop Peak IPA, Juice Drop Imperial Hazy IPA, Strawberry Sky, Mountain Beach Session Sour, Agave Wheat, Palisade Peach Light, Nitro Vanilla Porter, Nitro Irish Stout, and Christmas Ale (seasonal). In 2022, Breckenridge Agave Wheat won a Bronze medal in the American Wheat Beer category at the Great American Beer Festival.
• Blue Point Brewing Company was founded in 1998 by two friends who wanted to bring local craft beer to Long Island. Today, Blue Point has grown into one of the largest breweries in New York State, offering a lineup of easy-drinking and innovative craft beers. Its product portfolio includes Toasted Lager, Hoptical Illusion, Imperial Sunshine, Pinstripe Pils, as well as a rotating line of Innovation Beers. Blue Point has won numerous awards over the years that highlight the quality of innovation at forums such as the World Beer Cup, the Great American Beer Festival, the New York Craft Beer Competition, the Australian International Beer Awards, and the Atlantic City Beer Festival.
• 10 Barrel Brewing Company was founded in 2006 in Bend, Oregon by a team who shared one simple mindset: brew beer, drink beer, and have fun doing it. Today, 10 Barrel boasts an award-winning team of brewers and has four brewpub locations: Bend West (Bend, OR), Bend East (Bend, OR), Portland, OR and Boise, ID. 10 Barrel is one of the most acclaimed breweries in the U.S., winning a gold medal at the 2022 Great American Beer Festival in the Specialty Berliner-Style Weisse category and a bronze medal in the German Sour Ale Category. 10 Barrel is consistently a top medal winner at the Oregon Beer Awards. Its products include Apocalypse IPA, Nature Calls, Profuse Juice, Rock Hop IPA, All Ways Down, Club Tread Mandarin IPA, Pilsner, Pub Beer, and Cucumber Crush. 10 Barrel took home three Gold and one Silver medal at the 2023 World Beer Cup.
• Redhook Brewery, founded in Seattle, Washington, is one of the nation’s original craft breweries, crafting better beer since 1981. Four decades later, one thing has never changed—Redhook is still brewing great beers. Its award-winning beers include Big Ballard Imperial IPA, Hazy Big Ballard Imperial IPA, Tropical Big Ballard Imperial IPA, Storm Surge Hazy IPA, Lagersquatch Lager, and Long Hammer IPA. Redhook Brewlab opened in 2017 in the heart of Seattle’s Capitol Hill neighborhood. It has an 8-barrel brewing system where consumers can taste the latest experiments. In 2023, Redhook launched its Big Ballard IPA Variety Pack, the industry’s first Imperial Craft 18pk.
• Widmer Brothers Brewing, founded in Portland, Oregon in 1984, is one of the largest craft breweries in the Pacific Northwest. In 1986, Widmer Brothers introduced its Hefe beer, an American variant on the traditional Hefeweizen, which spread widely across the country. In the 2023 Best of Craft Beer Awards, Hefe won Gold in the American Wheat category and Widmer Brothers was awarded “Large Brewery of the Year”. Its award-winning beers include Hefe, Drop Top Amber, Deadlift Imperial IPA, Hopcadia NW IPA, Cold Waters Cold IPA, Juicy Sunrise IPA, and Green Skies Hazy IPA.
• Square Mile Cider Company, launched in 2013, offers ciders made with pure Pacific Northwest apples and lager yeast to create a perfectly crisp, clean, and semi-dry hard cider. Its offerings include Original Hard Cider, Rosé Apple Cider, Peach Lemonade Cider, Raspberry Lemonade Cider, and Imperial Blackberry Pie.
• HiBall Energy was founded in 2005 as a clean energy seltzer made with zero sugar, zero calories, and organic caffeine. HiBall’s products have included Grapefruit, Watermelon Mint, Wild Berry, Black Berry, Lemon Lime, Peach, and Vanilla – all crafted with a proprietary, organic-certified energy blend, consisting of caffeine, guarana, and ginseng.

For more information on Tilray Brands, visit www.Tilray.com and follow @Tilray on social media.