Tilray Brands, a major cannabis company, is expanding its presence in the alcoholic and cannabis beverages market by acquiring brands from Molson Coors and Anheuser-Busch. This strategic move comes as legal restrictions continue to hinder the marijuana industry.
On Friday, Tilray announced its acquisition of the remaining 57.5% equity ownership of cannabis-infused drinks maker Truss Beverage from Molson Coors Canada. The financial details of the transaction were not disclosed.
This expansion into beverages follows Tilray’s recent acquisition of eight beer and beverage brands from Anheuser-Busch for $85 million. These acquisitions have solidified Tilray’s position as one of the leading players in the craft beer space in the U.S.
With a market cap of $1.79 billion, Tilray is one of the largest cannabis companies globally. It specializes not only in cannabis products but also in beverage and wellness offerings. Through these acquisitions, Tilray has become the fifth largest craft beer company in the U.S.
The acquisition of Truss Beverage is part of Tilray’s broader diversification strategy. As growth in the North American cannabis industry slows down, companies focused on cannabis are looking to expand their portfolios. THC beverages and craft beer are emerging as rapidly growing sectors that pique the interest of cannabis industry executives.
Tilray expects this deal to establish its leadership position in adult-use cannabis beverages in Canada, capturing a combined market share of approximately 36%. The company believes that cannabis-infused beverages present a significant opportunity to reach legal-aged consumers who have yet to explore cannabis. It also anticipates that regulatory shifts will fuel substantial growth in the market.
Blair MacNeil, president of Tilray Canada, stated that this acquisition will further diversify Tilray’s product offerings while expanding its consumer reach.
In addition to the Truss Beverage deal, Tilray is also expanding its presence in the beer market by acquiring brands from Anheuser-Busch. The deal includes well-known brands such as Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Co., and HiBall Energy. This acquisition will triple Tilray’s beer business, increasing its output from 4 million to 12 million cases per year.
Tilray Brands already owns other craft breweries, including Alpine Beer, Green Flash Brewing, Montauk Brewing, and SweetWater Brewing.
While diversifying its offerings, Tilray also has its sights set on becoming a leader in the U.S. adult-use cannabis market once federal legalization occurs. The lack of nationwide reform and the inconsistent state regulations have hindered the growth of the industry in the U.S. Tilray’s CEO, Irwin D. Simon, expressed optimism about leveraging their leadership position, wide distribution network, and portfolio of well-loved beverage and wellness brands to include THC-based products and maximize commercial opportunities once federal cannabis legalization takes place.
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