US brewing major Boston Beer Co. has reportedly attracted interest from Canadian cannabis producer Green Thumb Industries in a merger between the two companies.
The Wall Street Journal said Green Thumb Industries CEO Ben Kovler has written to Boston Beer’s founder Jim Koch expressing interest in a deal.
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Kovler reportedly said a merger of the two companies would allow the Canadian cannabis company to be listed on the US stock exchange.
The letter also claimed Green Thumb Industries would be an addition to Boston Beer as while young people are drinking less, with the cannabis market is set for growth.
Boston Beer’s share price dipped by 3.7% this morning (4 June) following the media speculation but had recovered by 13:00 New York time.
Green Thumb Industries said in a statement it has a policy “not to comment on market rumours”.
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By GlobalDataJust Drinks has contacted Boston Beer for comment.
Earlier this week, Japan’s Suntory Holdings denied reports of being in early discussions to acquire Boston Beer.
A Suntory spokesperson told Just Drinks: “There is no fact that we are in any negotiations with Boston Beer.”
Suntory and Boston Beer have worked in tandem previously; in 2021, Suntory’s US spirits subsidiary Suntory Global Spirits (previously Beam Suntory) entered a long-term partnership with Boston Beer to release RTD spirit drink Truly. Beam said at the time it was looking to increase its presence in the alcoholic RTD market.
In the first quarter results of this year, Boston Beer saw its net revenue rise 3.9% to $426m while gross profit grew from $156m in 2023 to $186m. The brewer booked an operating income of $15m compared to a loss of $14m the previous year.
Boston Beer chief executive, Dave Burwick, retired in April and board member Michael Spillane took the reins.
