Canadian cannabis company Tilray Brands announced it has entered into an agreement to acquire eight alcoholic beverage brands from Anheuser-Busch (AB) amid its financial troubles over transgender influencer Dylan Mulvaney promoting Bud Light. .The reported purchase price is US$85 million..“Today’s announcement both solidifies our national leadership position and share in the US craft brewing market and marks a major step forward in our diversification strategy,” said Tilray Brands Chair and CEO Irwin D. Simon in a Monday press release. .“We are excited to work with the teams behind these iconic brands that command great consumer loyalty and have a history of delivering strong award-winning products with tremendous growth opportunities.” .Simon said Tilray is “fully committed to invest in, and champion the future of, the US craft beer industry by fuelling new innovation that excites and further accelerates the growth of its consumer base.”.AB decided to sell off these assets after recording a US$390 million drop in sales in the US on Thursday because of the Bud Light controversy. .READ MORE: Anheuser-Busch loses $390 million in second quarter because of Mulvaney controversy.AB blamed the volume decline in Bud Light sales for the drop in revenue in its second quarter, with figures showing total US revenue falling by 10.5% compared to one year earlier. .It said sales to US retailers plunged 14%, adding it had underperformed the industry as a direct result of the collaboration with Mulvaney..Tilray will acquire 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 purchase price will be paid in cash and the transaction is expected to close in 2023..Simon said these brands possess the hallmarks of strong consumer loyalty and further diversify its growing collection..The expected sales volume of the acquired brands will elevate Tilray to the fifth largest craft beer business position in the US — up from ninth — with current brands SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company, and Green Flash Brewing Company. .AB High End President Andy Thomas said Tilray reached out to it earlier this year with interest in purchasing these brands and held many positive conversations since then. .“The talented people behind these brands and breweries, along with our significant investments in them over the years, have positioned them for a bright future with Tilray Brands,” said Thomas. .“We are committed to working with Tilray Brands over the coming months to ensure this is a smooth transition for the people who are working every day to get these amazing beers and beverages to consumers across the US.”.Tilray US Beer President Ty Gilmore said this transaction means his business will triple in size from four million cases to 12 million annually. .“Looking ahead, we will further capitalize on the potential of these brands through product innovation, retailer partnerships, and expanded distribution into key markets, including the Pacific Northwest and California,” said Gilmore.
