Deal comes on the heels of a report that Mexican beer Modelo Especial is quickly gaining ground and threatening Bud Light’s reign as bestselling beer in the U.S
St. Louis – Anheuser-Busch is selling off eight of its beer and beverage brands to Tilray Brands, a cannabis-lifestyle and consumer packaged goods company, according to a news release.
The eight brands involved are Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company and HiBall Energy. The transaction includes current employees, breweries and brewpubs associated with these brands.
The deal comes on the heels of a report that Mexican beer Modelo Especial is quickly gaining ground and threatening Bud Light’s reign as bestselling beer in the U.S. following the Bud Light’s market free fall after its partnership with transgender activist Dylan Mulvaney. According to reports, Modelo has beaten Bud Light in U.S. sales for three consecutive months and is gaining on it for annual sales.
The purchase price will be paid in all cash and the transaction is expected to close in 2023.
“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,” said Irwin D. Simon, Chairman and CEO, Tilray Brands. “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 innovation that excites and further accelerates the growth of its consumer base.”
Tilray has been looking to purchase the brands for a while according to Andy Thomas, President, The High End at Anheuser-Busch.
“Tilray Brands reached out to us early this year with interest in purchasing these brands and breweries and since then, we’ve had many positive conversations that led to today’s announcement,” said Thomas. “The talented people behind these brands and breweries, along with our significant investments in them over the years, have positioned them for a bright future with Tilray Brands. We are committed to working with Tilray Brands over the coming months to ensure this is a smooth transition for the people who are working every day to get these amazing beers and beverages to consumers across the U.S.”
Photo Courtesy of Anheuser-Busch.