Tilray, Redhook, and what you need to understand about all that jazz.
Maybe you are not yet familiar with the name, but Tilray is a large player in North America’s cannabis industry. The company made huge advances in the craft beer industry recently. It is currently the fifth-largest craft brewer in the nation. Last August, Tilray bought eight beer brands from Anheuser-Busch, greatly adding to its then-small portfolio of craft breweries. Redhook Brewery was one of the breweries freed from A-B’s shackles, which should make a lot of oldtimers around Seattle happy.
The word on the street, Tilray is still shopping for craft breweries as it looks to further expand its presence in the industry. The company has a whopping $260 million in cash and other resources with which to do it, according to a report from MarketWatch.
Looking back at Tilray’s deal with Anheuser-Bush, the company paid $85 million for a collection of breweries that included Redhook Brewery, Widmer Brothers Brewery, 10 Barrel Brewing, Blue Point Brewing, Breckenridge Brewery, and others. Reportedly, it was an all-cash deal.
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Although $85 million is a lot of cabbage, it was a pretty good deal for Tilray. Quite a bargain. For Anheuser-Bush this was just a big off-loading. The company has bigger fish to fry and is backing away from the craft beer game by dumping its less profitable brands. I doubt Elysian Brewing falls into that category, by the way. Space Dust is everywhere.
The part of the story that hits home for Washingtonians is the part that involves Redhook, which a lot of people these days forget was the very first Ballard-born craft brewery. Because it was owned by A-B, I know a lot of people, myself included, felt a little bit dirty reaching for a Redhook product or visiting the Redhook Brewlab in Seattle, but y’all are now free to do so without shame.
Although Redhook is not a mom-and-pop shop like it once was, it is no longer owned by the largest beer company on earth, a company that at one time seemed to be actively targeting the craft beer industry for destruction. Sure, Tilray is a big company too, but it’s nothing compared to A-B. The company’s foray into the realm of craft beer appears something much less insidious.
As the cannabis industry gets increasingly crowded, Tilray is looking to diversify its holdings. Also, the prospect of THC-infused drinks becoming the next big thing in adult beverages is real. It makes a lot of sense that Tilray is getting its feet wet in the craft beer biz as it prepares for that eventuality.
So there you go. Feel free to visit the Redhook Brewlab in Seattle without shame. I did it not too long ago and was very impressed with the stuff they’re brewing up on Capitol Hill. While you’re there, don’t miss Chef Shota Nakajima’s mind-blowing pizza.
