Tilray Brands acquires four craft breweries from Molson Coors

Canadian cannabis and beverage company Tilray Brands has acquired four craft breweries from Molson Coors.

Financial terms of the deal were not disclosed.

The deal will see Tilray add Hop Valley Brewing Co., Terrapin Beer Co., Revolver Brewing and Atwater Brewery to its portfolio.

The group said it expects to increase its annual beer volumes by 15 million cases with the addition of the Molson Coors breweries. The group said the deal “anchors” it in the US states of Texas and Michigan, home to Revolver Brewing and Atwater Brewery, respectively.

The deal is expected to close by the end of this month, Tilray said Drinks only.

“With the acquisition of these four craft breweries from Molson Coors, we mark another strategic milestone in Tilray Brands’ growth plan,” said Tilray Brands CEO Irwin D. Simon.

“Our team’s expertise in operational excellence will allow us to unlock the full potential of these brands and businesses. We are confident in our ability to generate revenue, generate cost synergies and expand domestic distribution, strengthening our leadership position in craft beer, resulting in tremendous growth opportunities for our global beverage business.”

Hop Valley Brewing is based in Oregon, and Tilray Brands says it has grown to 43,000 distribution points in 12 states since its founding in 2009. Terrapin Beer Co., founded in Georgia in 2002, has 47,000 distribution points in 13 states.

Speaking about the offloading of group assets, Molson Coors Chief Commercial Officer Michelle St. Jacques, said: “Last autumn we set a clear ambition to premiumize the portfolio, and achieving this will require a greater focus on the segments we believe have the greatest growth potential for our business,”

St. Jacques added: “While we love these craft breweries and the people behind them, this move allows us to do just that – focus our time, energy and resources behind the initiatives we believe will best help us we are significantly growing the US portfolio over premium. in beer and beyond beer.”

Tilray Brands acquired a number of beer brands from Anheuser-Busch InBev last year, including Blue Point Brewing, Shock Top, Breckenridge Brewery and Square Mile Cider.

Some of the assets were acquired by AB InBev in transactions during the 2010s. Three of the brewers were bought in 2019 when the company acquired Craft Brew Alliance.

Tilray Brands’ net income from its spirits business was $202.1 million ($145.9 million) in the full year ended May 31, 2024, more than double the amount booked in 2023. The division’s gross profit of up 91% to $88.6. m from year to year.

The story continues

At the group level, Tilray Brands reported revenue of $788.9 million in 2024, up 26% from the previous year. It posted a 14% increase in gross profit to $223.4 million.

Overall, net losses for the year were $222 million, an improvement from $1.44 billion in 2023, which included brewery acquisitions.

Tilray Brands generates 25% of its revenue from alcoholic beverages, 35% from cannabis, 33% from its distribution business and 7% from “wellness” products, including hemp oils.

“Tilray Brands acquires four craft breweries from Molson Coors” was created and originally published by Just Drinks, a brand owned by GlobalData.

The information on this site has been included in good faith for general informational purposes only. It is not intended to constitute advice on which you should rely and we make no representation, warranty or guarantee, whether express or implied, as to its accuracy or completeness. You should obtain professional or specialist advice before taking or refraining from any action based on the content on our website.