The cannabis consumer products company Tilray Brands has entered into a definitive agreement to acquire four craft breweries from Molson Coors Beverage Company.
The acquisition includes Hop Valley Brewing Company, Terrapin Beer Co., Revolver Brewing and Atwater Brewery.
This comes after Tilray bought eight beer and beverage brands From AB-InBev last year.
With the pending acquisition of these four breweries from Molson Coors, Tilray’s portfolio will expand across beer markets, adding 30% new beer buying accounts, the company says. The Tilray Beverages portfolio contains a range of craft beer, spirits and non-alcohol beverages, including SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company, Green Flash Brewing Company, Shock Top, Breckenridge Brewery, Breckenridge Distillery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewing Company, Widmer Brothers Brewing, Square Mile Cider Company, HiBall Energy, and Happy Flower CBD sparkling cocktails.
This strategic acquisition is meant to position Tilray for continued growth and expansion in the beverage industry.
“Tilray Brands is proud to be driving the most compelling and unique growth story in the craft beer industry,” says Irwin D. Simon, chairman and CEO, Tilray Brands. “With the acquisition of these four craft breweries from Molson Coors, we are marking another strategic milestone in Tilray Brands’ growth plan. Our team’s expertise in operational excellence will enable us to unlock the full potential of these brands and businesses. We are confident in our ability to drive revenue, generate cost synergies, and expand national distribution reinforcing our leadership position in craft beer resulting in tremendous growth opportunities for our global beverage business.”
Simon continues, “Tilray Brands plans to continue to invest in the future of these craft breweries, accelerating their growth and capturing a wide range of new market opportunities. Tilray Brands is a beacon for craft brands, and we are committed to driving their growth and success within our portfolio. Our proven track record of integrating acquisitions and driving profitable growth gives us the confidence to deliver incredible value for our shareholders.”
Hop Valley Brewing Company is a craft brewery based in Eugene, Oregon, that was founded in 2009. Terrapin Beer Company is a craft brewery based in Athens, Georgia, founded in 2002. Revolver Brewing is a craft brewery in Granbury, Texas, established in 2012. Atwater Brewery is a craft brewery based in Detroit, Michigan, founded in 1997.
“We are excited to welcome the employees and distributors behind these craft beer brands which will play a pivotal role in the growth of Tilray Beverages,” says Ty Gilmore, president, Tilray Beverages, North America. “Through this acquisition, our beer business is expected to grow to 15 million cases annually, cementing Tilray Beverages as the #1 craft brewer in the Pacific Northwest, #1 in Georgia and anchors Tilray’s craft brands in two key beer states, Texas and Michigan. As we move forward, we will leverage our extensive expertise in product innovation and distribution to unlock the full potential of these brands, strengthen their sales and operations, and expand their reach into key markets across the U.S.”
Molson Coors Chief Commercial Officer Michelle St. Jacques explained how the transaction supports their long-term strategic ambitions, as well. “Last fall we set a clear portfolio premiumization ambition, and achieving it is going to require tighter focus on the segments we believe have the highest growth potential for our business,” St. Jacques said. “While we love these craft breweries and the people behind them, this move allows us to do exactly that – focus our time, energy and resources behind the initiatives we believe will best help us meaningfully grow our U.S. above premium portfolio in beer and beyond beer.”
TD Securities acted as financial advisor, and DLA Piper LLP (US) acted as external legal counsel to Tilray Brands.
