Tilray Expands into Alcoholic and Cannabis Beverages, Acquiring Brands from Molson Coors and Anheuser-Busch
Tilray Brands Expanding Footprint in Alcoholic and Cannabis Beverages
Tilray Brands is taking steps to expand its presence in the alcoholic and cannabis beverages market by acquiring brands from Molson Coors and Anheuser-Busch. This move comes as legal restrictions continue to hinder the growth of the marijuana industry.
Acquisition of Truss Beverage from Molson Coors
Tilray announced on Friday that it will acquire the remaining 57.5% equity ownership of Truss Beverage, a cannabis-infused drinks maker, from Molson Coors Canada. The financial details of the transaction have not been disclosed.
Branching Out from Traditional Cannabis Products
Tilray is actively diversifying its product portfolio and has recently acquired eight beer and beverage brands from Anheuser-Busch for $85 million. This strategic move is part of Tilray’s broader plan to tap into the growing market for THC beverages and craft beer.
Tilray’s Market Position and Diversification Strategy
Tilray is one of the largest cannabis companies globally, with a market capitalization of $1.79 billion. In addition to cannabis products, the company specializes in beverage and wellness products. Through its craft beer acquisitions, Tilray has become the 5th largest craft beer company in the U.S.
The acquisition of Truss Beverage aligns with Tilray’s diversification strategy, which aims to expand its portfolio to counter the stagnation in the North American cannabis industry. By venturing into cannabis-infused beverages and craft beer, Tilray intends to tap into high-growth sectors that have caught the interest of cannabis executives.
Tilray’s Leading Position in Adult-Use Cannabis Beverages in Canada
Tilray expects the acquisition of Truss Beverage to make it the leader in adult-use cannabis beverages in Canada, holding a combined market share of approximately 36%. The company sees cannabis beverages as a significant opportunity to reach legal-aged consumers who have not explored cannabis yet. It anticipates substantial growth in the market due to potential regulatory shifts.
Diversifying the Product Offerings and Broadening Consumer Reach
Blair MacNeil, President of Tilray Canada, believes that acquiring Truss Beverage will further diversify their product offerings and broaden their consumer reach.
Expansion of Tilray’s Beer Business through Anheuser-Busch Deal
In addition to cannabis beverages, Tilray is also expanding its beer business by acquiring various brands from Anheuser-Busch. This 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 Company, and HiBall Energy. The transaction includes all current employees, breweries, and associated brewpubs, and is expected to triple Tilray’s beer business 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.
Ambitions in the U.S. Adult-Use Cannabis Market
Tilray aims to become a leader in the U.S. adult-use cannabis market if federal legalization occurs. The current lack of nationwide reform and the complex patchwork of state regulations have posed challenges for cannabis companies in the U.S. However, Tilray believes that its leadership position, extensive distribution network, and portfolio of beloved beverage and wellness brands will enable it to maximize commercial opportunities involving THC-based products upon federal cannabis legalization.