Tilray Brands, Inc. (“Tilray Brands”, “Tilray”, “we” or the
“Company”) (Nasdaq | TSX: TLRY), a leading global
cannabis-lifestyle and consumer packaged goods company, today
announced that the Company has entered into a definitive agreement
to acquire eight beer and beverage brands from Anheuser-Busch
(NYSE: BUD). Upon satisfaction of customary closing conditions,
Tilray will acquire 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 purchase price will be paid in
all cash and the transaction is expected to close in 2023.
These beer and beverage brands possess the
hallmarks of strong consumer loyalty and further diversify Tilray’s
growing U.S. beverage alcohol segment. The expected sales volume of
the acquired brands will elevate Tilray Brands to the 5th largest
craft beer business position in the U.S., up from the 9th, with
current brands SweetWater Brewing Company, Montauk Brewing Company,
Alpine Beer Company and Green Flash Brewing Company. Tilray Brands
also owns Breckenridge Distillery, the award-winning spirits brand
and the World’s Best Blended Whisky, and Happy Flower CBD sparkling
non-alcoholic cocktails.
Irwin D. Simon, Chairman and CEO, Tilray Brands,
said, “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. 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 new innovation that excites and
further accelerates the growth of its consumer base.”
__________________________________
1 Expected ranking based on Brewers Association 2022 Annual
Report and expected sales volume.2 Based on 2022 Beer Institute
craft beer industry data.3 Pro-forma revenue based on Tilray’s May
31, 2023 revenue for beverage-alcohol with impacts of Montauk
Brewing normalized to be reflective of a full fiscal year of
results and revenue of the acquired brands reported December 31,
2022.
Mr. Simon continued, “Leveraging the deep CPG
expertise of Tilray’s leadership team and acquisition integration
track record, we intend to drive both revenue and cost synergies,
while significantly expanding national distribution to coveted
markets across the U.S. and internationally. In a matter of three
years, Tilray has solidified its leadership position in the craft
beer industry, and we fully intend to be that change agent that
reinvigorates the sector. Upon federal cannabis legalization, we
expect to leverage our leadership position, wide distribution
network and portfolio of beloved beverage and wellness brands to
include THC-based products and maximize all commercial
opportunities.”
Andy Thomas, President, The High End at
Anheuser-Busch said “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. 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.”
Ty Gilmore, President, U.S. Beer at Tilray
Brands, added, "With this transaction, our beer business is
expected to triple in size from 4 million cases to 12 million cases
annually. Looking ahead, we will further capitalize on the
potential of these brands through product innovation, retailer
partnerships and expanded distribution into key markets, including
the Pacific Northwest and California.”
Strengthens and Solidifies Tilray’s
Leadership Position in Craft Brewing:
- Established brand portfolio with
loyal consumer base and growth upside from synergies and expanded
capabilities in alcohol and non-alcoholic beverages
- Projected to generate craft beer
pro forma revenue of $250 million
- Distribution relationships through
the Anheuser-Busch system, strengthening our distribution footprint
nationwide
Modern Facilities and Operations Fuel
Innovation and Commercial Growth Opportunities:
- Four production facilities across
the U.S.: Portland, OR, Bend, OR, Littleton, CO and Patchogue,
NY
- Eight vibrant brewpub locations:
Seattle, WA, Bend, OR (2), Portland, OR, Boise, ID, Littleton, CO,
Breckenridge, CO, and Patchogue, NY
- Provides additional manufacturing
capacity and innovation capabilities for commercial expansion
opportunities
- Additional synergies being
identified to increase profitability
Iconic Brands with Loyal Consumer
Base:
- Shock Top is an
award winning traditional Belgian-style wheat ale that was
originally introduced in 2006 as a seasonal offering. After taking
home the gold medal at the North American Beer Awards in the
Belgian White category, it became a year-round offering. Shock Top
Belgian White is a spiced wheat ale brewed with coriander spice and
the peels of three different citrus fruits: orange, lemon, and
lime. This uniquely crafted ale is unfiltered to create a naturally
cloudy brew with a light golden color and a smooth, refreshing
finish. Shock Top also has a seasonal line-up that excites
consumers every year, led by the Twisted Pretzel Wheat, delivering
delicious taste and aroma of bakery-fresh pretzels.
- Breckenridge
Brewery opened its doors in 1990 in the ski town of
Breckenridge, Colorado and has grown into one of the most
recognized craft breweries in the U.S. Today, Breckenridge Brewery
has two locations to visit – the original brewpub in Breckenridge
and its renowned Farm House restaurant in Littleton, CO, outside
Denver. With a focus on balanced, approachable, and interesting
beer, the brewery’s portfolio includes Avalanche Amber Ale,
Palisade Peach Wheat, Juice Drop Hazy IPA, Funslinger Lager,
Vanilla Porter, Hop Peak IPA, Juice Drop Imperial Hazy IPA,
Strawberry Sky, Mountain Beach Session Sour, Agave Wheat, Palisade
Peach Light, Nitro Vanilla Porter, Nitro Irish Stout, and Christmas
Ale (seasonal). In 2022, Breckenridge Agave Wheat won a Bronze
medal in the American Wheat Beer category at the Great American
Beer Festival.
- Blue Point Brewing
Company was founded in 1998 by two friends who wanted to
bring local craft beer to Long Island. Today, Blue Point has grown
into one of the largest breweries in New York State, offering a
lineup of easy-drinking and innovative craft beers. Its product
portfolio includes Toasted Lager, Hoptical Illusion, Imperial
Sunshine, Pinstripe Pils, as well as a rotating line of Innovation
Beers. Blue Point has won numerous awards over the years that
highlight the quality of innovation at forums such as the World
Beer Cup, the Great American Beer Festival, the New York Craft Beer
Competition, the Australian International Beer Awards, and the
Atlantic City Beer Festival.
- 10 Barrel Brewing
Company was founded in 2006 in Bend, Oregon by a team who
shared one simple mindset: brew beer, drink beer, and have fun
doing it. Today, 10 Barrel boasts an award-winning team of brewers
and has four brewpub locations: Bend West (Bend, OR), Bend East
(Bend, OR), Portland, OR and Boise, ID. 10 Barrel is one of the
most acclaimed breweries in the U.S., winning a gold medal at the
2022 Great American Beer Festival in the Specialty Berliner-Style
Weisse category and a bronze medal in the German Sour Ale Category.
10 Barrel is consistently a top medal winner at the Oregon Beer
Awards. Its products include Apocalypse IPA, Nature Calls, Profuse
Juice, Rock Hop IPA, All Ways Down, Club Tread Mandarin IPA,
Pilsner, Pub Beer, and Cucumber Crush. 10 Barrel took home three
Gold and one Silver medal at the 2023 World Beer Cup.
- Redhook Brewery,
founded in Seattle, Washington, is one of the nation’s original
craft breweries, crafting better beer since 1981. Four decades
later, one thing has never changed—Redhook is still brewing great
beers. Its award-winning beers include Big Ballard Imperial IPA,
Hazy Big Ballard Imperial IPA, Tropical Big Ballard Imperial IPA,
Storm Surge Hazy IPA, Lagersquatch Lager, and Long Hammer IPA.
Redhook Brewlab opened in 2017 in the heart of Seattle’s Capitol
Hill neighborhood. It has an 8-barrel brewing system where
consumers can taste the latest experiments. In 2023, Redhook
launched its Big Ballard IPA Variety Pack, the industry’s first
Imperial Craft 18pk.
- Widmer Brothers
Brewing, founded in Portland, Oregon in 1984, is one of
the largest craft breweries in the Pacific Northwest. In 1986,
Widmer Brothers introduced its Hefe beer, an American variant on
the traditional Hefeweizen, which spread widely across the country.
In the 2023 Best of Craft Beer Awards, Hefe won Gold in the
American Wheat category and Widmer Brothers was awarded “Large
Brewery of the Year”. Its award-winning beers include Hefe, Drop
Top Amber, Deadlift Imperial IPA, Hopcadia NW IPA, Cold Waters Cold
IPA, Juicy Sunrise IPA, and Green Skies Hazy IPA.
- Square Mile Cider
Company, launched in 2013, offers ciders made with pure
Pacific Northwest apples and lager yeast to create a perfectly
crisp, clean, and semi-dry hard cider. Its offerings include
Original Hard Cider, Rosé Apple Cider, Peach Lemonade Cider,
Raspberry Lemonade Cider, and Imperial Blackberry Pie.
- HiBall Energy was
founded in 2005 as a clean energy seltzer made with zero sugar,
zero calories, and organic caffeine. HiBall’s products have
included Grapefruit, Watermelon Mint, Wild Berry, Black Berry,
Lemon Lime, Peach, and Vanilla – all crafted with a proprietary,
organic-certified energy blend, consisting of caffeine, guarana,
and ginseng.
WebcastTilray Brands will host
a live webcast to discuss today’s announcement at 4:45 p.m. ET,
which will be available on the Investors section of Tilray’s
website at www.Tilray.com. The webcast will also be archived.
For further details, investors and other
security holders may also obtain a copy of the presentation
associated with the transaction on the Investors section of Tilray
Brands’ website at www.Tilray.com.
About Tilray BrandsTilray
Brands, Inc. (Nasdaq: TLRY; TSX: TLRY), is a leading global
cannabis-lifestyle and consumer packaged goods company with
operations in Canada, the United States, Europe, Australia, and
Latin America that is changing people's lives for the better – one
person at a time. Tilray Brands delivers on this mission by
inspiring and empowering the worldwide community to live their very
best life, enhanced by moments of connection and wellbeing.
Patients and consumers trust Tilray Brands to be the most
responsible, trusted and market leading cannabis consumer products
company in the world with a portfolio of innovative, high-quality,
and beloved brands that address the needs of the consumers,
customers, and patients we serve. A pioneer in cannabis research,
cultivation, and distribution, Tilray Brands’ unprecedented
production platform supports over 20 brands in over 20 countries,
including comprehensive cannabis offerings, hemp-based foods, and
craft beverages.
For more information on Tilray Brands, visit
www.Tilray.com and follow @Tilray
Cautionary Statement Concerning
Forward-Looking StatementsCertain statements in this
communication that are not historical facts constitute
forward-looking information or forward-looking statements
(together, “forward-looking statements”) under U.S. and Canadian
securities laws and within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, that are intended to
be subject to the “safe harbor” created by those sections and other
applicable laws. Forward-looking statements can be identified by
words such as “forecast,” “future,” “should,” “could,” “enable,”
“potential,” “contemplate,” “believe,” “anticipate,” “estimate,”
“plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and
the negative of these terms or similar expressions, although not
all forward-looking statements contain these identifying words.
Certain material factors, estimates, goals, projections, or
assumptions were used in drawing the conclusions contained in the
forward-looking statements throughout this communication.
Forward-looking statements include statements regarding our
intentions, beliefs, projections, outlook, analyses or current
expectations concerning, among other things: the timing and
certainty of closing the acquisition of craft brands from
Anheuser-Busch; the Company’s expected revenue generation and
accretion related to the acquisition; the Company’s ability to
expand upon distribution and sales of alcohol products, in the
U.S.; expected opportunities upon U.S. federal legalization; and
the Company’s ability to commercialize new and innovative products.
Many factors could cause actual results, performance, or
achievement to be materially different from any forward-looking
statements, and other risks and uncertainties not presently known
to the Company or that the Company deems immaterial could also
cause actual results or events to differ materially from those
expressed in the forward-looking statements contained herein. For a
more detailed discussion of these risks and other factors, see the
most recently filed Annual Report on Form 10-K (and other periodic
reports filed with the SEC) of Tilray Brands made with the SEC and
available on EDGAR. The forward-looking statements included in this
communication are made as of the date of this communication and the
Company does not undertake any obligation to publicly update such
forward-looking statements to reflect new information, subsequent
events or otherwise unless required by applicable securities
laws.
Media:Berrin Nooratanews@tilray.com
Jaydon Case 647-882-1799news@tilray.com
InvestorsRaphael
Gross203-682-8253Raphael.Gross@icrinc.com
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