Tilray Brands becomes #1 Craft Brewer in the Pacific Northwest
Tilray, Inc. has closed its all-cash acquisition of eight beer and beverage brands from Anheuser-Busch (NYSE: BUD), including the breweries and brewpubs associated with them. This is a completion of the bombshell news in August was that global beer behemoth Anheuser-Busch was selling most of their acquired (and created) “Craft” beer brands to Canada based cannabis company Tilray, Inc. now owns 10 Barrel Brewing, Widmer Brothers, Redhook Brewery, Square Mile Cider, Breckenridge Brewery, Blue Point Brewing, HiBall Energy and Anheuser-Busch’s in-house created Blue Moon competitor Shock Top Wheat. Tilray now holds 5% of the U.S. Craft Beer market share and becomes 5th largest craft brewer in the country, #1 craft crewer in the Pacific Northwest, #4 in the southeast, and 5th in the northeast
While most of the media is playing up a doom and gloom scenario for the craft beer industry, Tilray thinks it has a bright future. It is undeniable that the craft beer market has slowed, flattening out, and is down in many areas. But the question is if things are stabilizing or will continue to get worse. Tilray cites a 2022 Brewers Association report that projects the U.S. craft beer market is projected to generate approximately $30 billion in revenue, and to grow at a CAGR of approximately 7.2% through 2030.
10 Barrel Brewing Celebrates End to their Ownership by Anheuser-Busch
Last weekend Bend, Oregon based 10 Barrel Brewing was quick to turn the end of AB ownership into a PR boon by throwing a banner over the brewery balcony proclaiming “Now with less Anheuser-Busch!”, crushing cans and spraying beer in a jubilant display. We shared the image on @newschoolbeer instagram and our facebook feed where it quickly exploded and currently has 8K likes on facebook and is nearing 800 likes on instagram.
“It's official, Anheuser-Busch no longer owns 10 Barrel Brewing Company,” the 10 Barrel team announced in a press release. “What does 10 Barrel—a brand built around the mantra “Brew beer, drink beer, have fun doing it”—have to say about that?“
10 Barrel Brewing’s original founding owner Chris Cox, who still manages the brand, said “We are excited for 10 Barrel and our new partner, Tilray! Our team has always been focused on making the best beer, and most importantly, having fun. 10 Barrel winning = more fun, more innovation, less PowerPoints, less Zoom calls! Let's go!”
According to the Brewers Association, 10 Barrel Brewing and the others acquired by Tilray Inc. are now craft beer brands again, and can join the membership and receive various benefits and recognition. The standard for admittance into the not-so exclusive “craft and independent” beer club is simply that they cannot be majority owned by a massive global beer company such as Anheuser-Busch, MillerCoors, Constellation, Heineken, etc. So simply the fact that Tilray is a cannabis corporation and not a beer company lets their acquired brands (which already included Sweetwater Brewing) back into the club. It also means that 10 Barrel and Widmer Brothers Brewing can potentially rejoin the local trade organization the Oregon Brewers Guild, which would allow them to participate in more events, committees, boards, and contribute to fundraising and decision making.
Many skeptical beer fans and commentators remarked that the change of ownership is not necessarily anything to celebrate, as the brewery trades one massive corporate owner for another. It’s also a bit strange that 10 Barrel owners spent a decade defending their independent status and new found assets under Anheuser-Busch, but are now disparaging it. The press releases final sign-off: Bye, Felicia. Now, let’s get back to business.
Tilray Inc. marks what may be the quickest rise to prominence of any brewery ownership group in history. Combined with the pro forma sales revenue from the acquired businesses, Tilray Brands is expected to become the 5th largest craft beer business in the U.S. market this year, up from the 9th, with its current brands SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company, and Green Flash Brewing Company.
Irwin D. Simon, Chairman and Chief Executive Officer, Tilray Brands, said, “Tilray Brands’ portfolio today reflects our diversified business and the integration of key strategic acquisitions that have enabled us to grow our top line and deliver substantial cost savings through synergies, all while significantly expanding distribution to coveted markets across the U.S. and internationally. With this EBITDA accretive transaction, Tilray has acquired a stellar lineup of eight craft beer and beverage brands that both solidify our leadership in the craft beer industry and strengthen our business in the expansive beverage sector in which we see tremendous opportunity to reinvigorate innovation across many categories including non-alcoholic beverages, energy, and nutritional drinks. Together with our best-in-class team, I am confident that we will successfully integrate our current beer assets with these newly acquired brands and businesses to set the stage for higher growth.”
Mr. Simon continued, “Tilray’s diversified growth strategy is a purposeful and strategic adaptation to current market realities given delayed federal cannabis legalization in the U.S. When federal cannabis legalization does happen, we believe that Tilray will be ready to dominate as a leading global CPG company with the resources, infrastructure and operations, distribution, brands, sales, and marketing know-how to lead the revolution of cannabis CPG in the mainstream.”
Ty Gilmore, President, Tilray Beer, added, "We are incredibly excited to welcome these iconic brands and the teams behind them to the Tilray Beer business. These brands command great consumer loyalty and have a history of delivering strong award-winning products with tremendous growth opportunities. Tilray is fully committed to invest in and champion the future of the U.S. craft beer industry by fueling innovation and by reinvigorating our marketing, to excite and further accelerate the growth of our consumer base and drive new opportunities of growth and profitability for Tilray and our distributor partners.”