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 closed its all-cash
previously-announced acquisition of eight beer and beverage brands
from Anheuser-Busch (NYSE: BUD), including the breweries and
brewpubs associated with them. The acquired businesses include
Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10
Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing,
Square Mile Cider Company, and HiBall Energy.
In 2023, the U.S. craft beer market is projected
to generate approximately $30 billion in revenue, and to grow at a
CAGR of approximately 7.2% through 20303. Combined with the pro
forma sales revenue from the acquired businesses, Tilray Brands is
expected to become the 5th largest craft beer business in the U.S.
market this year2, up from the 9th, with its current brands
SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer
Company, and Green Flash Brewing Company.
Irwin D. Simon, Chairman and Chief Executive
Officer, Tilray Brands, said, “Tilray Brands’ portfolio today
reflects our diversified business and the integration of key
strategic acquisitions that have enabled us to grow our top line
and deliver substantial cost savings through synergies, all while
significantly expanding distribution to coveted markets across the
U.S. and internationally. With this EBITDA accretive transaction,
Tilray has acquired a stellar lineup of eight craft beer and
beverage brands that both solidify our leadership in the craft beer
industry and strengthen our business in the expansive beverage
sector in which we see tremendous opportunity to reinvigorate
innovation across many categories including non-alcoholic
beverages, energy, and nutritional drinks. Together with our
best-in-class team, I am confident that we will successfully
integrate our current beer assets with these newly acquired brands
and businesses to set the stage for higher growth.”
Mr. Simon continued, “Tilray’s diversified
growth strategy is a purposeful and strategic adaptation to current
market realities given delayed federal cannabis legalization in the
U.S. When federal cannabis legalization does happen, we believe
that Tilray will be ready to dominate as a leading global CPG
company with the resources, infrastructure and operations,
distribution, brands, sales, and marketing know-how to lead the
revolution of cannabis CPG in the mainstream.”
Ty Gilmore, President, Tilray Beer, added, "We
are incredibly excited to welcome these iconic brands and the teams
behind them to the Tilray Beer business. These brands 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 and by reinvigorating our
marketing, to excite and further accelerate the growth of our
consumer base and drive new opportunities of growth and
profitability for Tilray and our distributor partners.”
Strategic financial benefits include the
following:
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
- Strengthens distribution footprint
nationwide
- Triples Tilray’s beer sales volume
from four million cases to twelve million
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
- Identified synergies across
procurement, logistics and supply chain to reinvest profitability
into growth drivers
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 Twisted Pretzel Wheat, delivering
delicious taste and aroma of bakery-fresh pretzels.
- 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.
- 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 (India Pale Ale),
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.
- 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.
In addition to Tilray Brands’ craft beer
portfolio, Tilray also owns Breckenridge Distillery, the
award-winning spirits brand and the World’s Best Blended Whisky,
Truss Beverage Co. non-alcoholic cannabis-beverages, and Happy
Flower CBD sparkling non-alcoholic cocktails.
About Tilray Brands
Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY),
is a leading global cannabis-lifestyle and consumer packaged goods
company with four distinct and complementary business segments
including medical and adult-use cannabis, medical distribution,
wellness foods, and beverage-alcohol. Tilray Brands is on a mission
to change people’s lives for the better – one person at a time - 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 and 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, today Tilray Brands’
unprecedented and diversified production platform supports a
portfolio of best-in-class brands in over 20 countries including
comprehensive adult-use and medical cannabis offerings, hemp-based
foods, and craft beverages across North America, Europe, Australia,
and Latin America.
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 Company’s expected
revenue growth, sales volume, profitability, synergies and
accretion related to the acquisition; the Company’s ability to
realize projected craft beer pro-forma revenue of $250 million; 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 (Securities and Exchange
Commission)) 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 Contact:Berrin Nooratanews@tilray.com
Investor Contact:Raphael
Gross203-682-8253Raphael.Gross@icrinc.com
1 Based on 2022 Beer Institute craft beer industry data.2
Expected rankings based on Brewers Association 2022 Annual Report
and expected sales volume.3 Brewers Association 2022 Report.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/39ca6f26-c1d7-43d5-bffd-6025ef9b2924
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