Anheuser-Busch Sells Off 10 Barrel Brewing, Widmer, Redhook, Shock Top and 4 more brands
Anheuser-Busch, the world’s largest beer maker, has sold-off 8 top craft beer, cider, and energy drink brands to Tilray Brands Inc. Top Oregon/Pacific northwest brands 10 Barrel Brewing, Widmer Brothers, Redhook Brewery, and Square Mile Cider, are part of the transaction which also includes AB/InBev’s blue moon clone Shock Top, as well as Breckenridge Brewery, Blue Point Brewing, and HiBall Energy. A press release states: The transaction includes current employees, breweries and brewpubs associated with these brands. The purchase price will be paid in all cash and the transaction is expected to close in 2023. Once the deal has closed, it is expected to position Tilray as the 5th largest “craft” brewer in the U.S. with 5% craft market share though the brands do not meet the Brewers Association’s definition of small or craft brewers.
This follows warning signs that big beer has been abandoning the craft beer market that they sought to control only a decade ago. Recently, 10 Barrel Brewing was hit with significant layoffs in sales, marketing, and production, that in hindsight we should have seen as warning signs of a potential sale.
In 2020, Anheuser-Busch acquired Craft Brew Alliance which comprises the family of brands Widmer Brothers, RedHook, Square Mile Cider, Omission gluten-reduced beers, and Kona Brewing among others. At the time, it was fiercely debated whether AB/InBev wanted any of them other than the rising stock of Kona Brewing. By selling off Widmer, RedHook, and Square Mile (but not Kona), we have the answer.
Tilray Brands, Inc. (“Tilray Brands”, “Tilray”, “we” or the “Company”) (Nasdaq | TSX: TLRY), is a leading global cannabis-lifestyle and consumer packaged goods company that is one today's most active stocks by volume according to market/trading analysts. Less than 2 weeks ago, Tilray Brands reported record Q4 Net Revenue of $184 Million, Representing 20% Growth Year over Year, $627 Million of Net Revenue for FY2023.
At the time, the Globe & Mail quoted Tilray’s Chairman and Chief Executive Officer, Irwin Simon as saying:
"Craft beer is cool and will become cooler. And some of the stuff that we're doing at SweetWater and Montauk, some of the stuff that we've done so far in regards to Breckenridge and our bourbons and some of the winnings that we've had in being No. 1 is just tremendous. Our balance sheet, which is so important today, cash is king and sitting close to $500 million of cash and have the ability to invest in our business, have the ability to invest in acquisitions, having the ability to market our brands where we can and let consumers know about our brands because our brands are cool."
In a press release, Tilray Brands Inc. wrote
These beer and beverage brands possess the hallmarks of strong consumer loyalty and further diversify Tilray’s growing U.S. beverage alcohol segment. The expected sales volume of the acquired brands will elevate Tilray Brands to the 5th largest craft beer business position in the U.S., up from the 9th, with current brands SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company and Green Flash Brewing Company. Tilray Brands also owns Breckenridge Distillery, the award-winning spirits brand and the World’s Best Blended Whisky, and Happy Flower CBD sparkling non-alcoholic cocktails.
Irwin D. Simon, Chairman and CEO, Tilray Brands, said, “Today’s announcement both solidifies our national leadership position and share in the U.S. craft brewing market and marks a major step forward in our diversification strategy. 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. Tilray is fully committed to invest in and champion the future of the U.S. craft beer industry by fueling new innovation that excites and further accelerates the growth of its consumer base.”