Tilray Brands, a large and well-established North American cannabis company, is acquiring four more beer brands, including Oregon-based Hop Valley Brewing. Today, Brewbound reported that the company has reached “a definitive agreement” with Molson Coors Beverage Company to acquire Hop Valley Brewing, Terrapin Beer (Georgia), Revolver Brewing (Texas), and Atwater Brewing (Michigan). Details were not disclosed but the deal is expected to close later this month. When that happens, Tilray’s portfolio will include 20 brewhouses across the USA.
About a year ago, Tilray Brands acquired a handful of breweries from Anheuser-Busch, including Redhook, Widmer, 10 Barrel, and five others. Because of the nature of its business, and though it may not make sense to most craft beer enthusiasts, Tilray fits the Brewers Association’s definition of a craft brewer. As such, this move will make Tilray the 4th largest craft brewer in the nation. Redhook, 10 Barrel, Hop Valley, and the rest are brands beneath the Tilray umbrella. You can learn about the BA’s definition of craft brewer here.
The bet on beer has paid off for Tilray. Two weeks ago the company reported a 26% increase in net revenue over the prior year. This was fueled largely by its recently acquired beverage alcohol brands. “Beverage-alcohol net revenue increased 137% to $76.7 million in the fourth quarter from $32.4 million in the prior year quarter. The increase was led by new product innovation and contributions from our Craft Acquisition brands,” said a statement from Tilray.
Tilray Brands chairman and CEO, Irwin D. Simon, told Brewbound: “As you look at these businesses, there is the brewhouses, there is the on-premise, there’s the retail part of it, and then there’s the manufacturing. So there’s a lot to do, but the good news is we have a year under our belt of a good playbook that we put in place with the ABI pieces. Now this [the Molson Coors acquisitions] is less than half the size, probably less, than what ABI was. So we felt we could absolutely integrate this and digest this.”
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Tilray is a leader in North America’s cannabis industry. As the cannabis industry gets increasingly crowded, Tilray has looked 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.
Back in January of this year, we reported that the word on the street was that Tilray was still shopping for craft breweries. Simon told Brewbound, “We aren’t out there looking to buy anything… We get offers every day to buy certain craft brands, but we have a strategic plan of what we want and what makes sense… There’s places today that are selling these brands that we’re not. That will help us get additional distribution there.” Simon added that the company’s distribution business will expand by more than 20%.
Read the complete story on Brewbound (subscription required).
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