Canadian cannabis and beverage company Tilray Brands has acquired four craft breweries from Molson Coors.
Financial terms of the deal were not disclosed.
The agreement will see Tilray adding Hop Valley Brewing Co., Terrapin Beer Co., Revolver Brewing, and Atwater Brewery to its portfolio.
The group said it expects to grow its annual beer volumes by 15 million cases with the addition of the Molson Coors breweries. The group noted that the deal “anchors” it in the US states of Texas and Michigan, where Revolver Brewing and Atwater Brewery are respectively located.
The deal is expected to close by the end of this month, Tilray told Just Drinks.
“With the acquisition of these four craft breweries from Molson Coors, we are marking another strategic milestone in Tilray Brands’ growth plan,” Tilray Brands CEO Irwin D. Simon said.
“Our team’s expertise in operational excellence will enable us to unlock the full potential of these brands and businesses. We are confident in our ability to drive revenue, generate cost synergies, and expand national distribution reinforcing 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 claims it has grown to 43,000 points of distribution across 12 states since its founding in 2009. The 2002 Georgia established Terrapin Beer Co. has 47,000 distribution points across 13 states.
Speaking on the group’s asset offload, Molson Coors’ chief commercial officer Michelle St. Jacques said: “Last fall we set a clear portfolio premiumisation ambition, and achieving it is going to require tighter focus on the segments we believe have the highest 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 exactly that – focus our time, energy and resources behind the initiatives we believe will best help us meaningfully grow our US above premium portfolio in beer and beyond beer.”
Tilray Brands acquired a clutch 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 deals during the 2010s. Three of the brewers were bought in 2019 when the company acquired Craft Brew Alliance outright.
Tilray Brands’ net revenue from its beverage-alcohol business stood at $202.1m in the full year ended 31 May 2024, more than double the sum booked in 2023. Gross profit from the division was up 91% to $88.6m year-on-year.
On a group level, Tilray Brands reported revenue of $788.9m in 2024, up 26% on the year prior. It posted a 14% increase in gross profit to $223.4m.
In total, net losses for the year stood at $222m, an improvement on $1.44bn in 2023, which included brewery acquisitions.
Tilray Brands generates 25% of its revenue from beverage alcohol, 35% from cannabis, 33% from its distribution business and 7% from “wellness” products, including hemp oils.
