USA: Cannabis company Tilray buys four Molson Coors breweries
Canadian cannabis company, Tilray, is making more moves in the craft beer space and this time it’s picking up brands from Molson Coors, The Denver Post reported.
On August 13, Tilray announced it has inked a deal with the beverage giant to acquire four breweries: Hop Valley Brewing Co. in Eugene, Ore., Terrapin Beer Co. in Athens, Ga., Revolver Brewing in Granbury, Texas, and Atwater Brewery in Detroit. The purchase price was not disclosed.
The acquisition comes at a time when the beer industry overall is struggling, but that hasn’t deterred Tilray from betting big on the space. As of 2023, Tilray was the sixth-largest craft beer company in the U.S. by production volume, according to the Brewers Association.
“Tilray Brands is proud to be driving the most compelling and unique growth story in the craft beer industry,” Irwin Simon, Tilray’s chairman and CEO, said in a statement. “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.”
Molson Coors purchased three of the four aforementioned brands – Revolver, Hop Valley, and Terrapin – in 2016 when the craft beer segment was experiencing record growth. Michelle St. Jacques, chief commercial officer, said the decision to sell will enable Molson Coors to focus on more lucrative products. Those plans include closing its experimental arm, AC Golden Brewing Co., known for its line of Colorado Native beers that feature locally grown ingredients.
“Last fall we set a clear portfolio premiumization 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 said in a statement. “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 U.S. above premium portfolio in beer and beyond beer.”
The announcement comes one year after Tilray purchased a craft portfolio from Anheuser Busch InBev that included Colorado’s own Breckenridge Brewery. Tilray has deep roots in Colorado as the owner of Breckenridge Distillery and SweetWater Brewing Co., which operated a large production facility in Fort Collins until recently.
On Aug. 17, the facility will reopen as a new Breckenridge Brewery location complete with a restaurant and taproom serving a variety of Tilray beers.
Following the acquisition, Tilray will own and operate 14 breweries, including beloved stalwarts like Shock Top, Green Flash Brewing Co., Widmer Brothers Brewing, and 10 Barrel Brewing Co., as well as a distillery, cider company, and other non-alcoholic beverage brands. That’s in addition to its global cannabis businesses in Canada, Europe, Latin America and Australia.
“Tilray Brands plans to continue to invest in the future of these craft breweries, accelerating their growth and capturing a wide range of new market opportunities,” Simon added. “Tilray Brands is a beacon for craft brands, and we are committed to driving their growth and success within our portfolio.”
14 August, 2024
