- Tilray Brands shares soared after buying 8 brands of beer and other beverages from Anheuser-Busch InBev for an undisclosed price.
- Tilray said the purchase will bolster its offering of craft beers and will help the company diversify.
- AB InBev entered into the agreement after reporting a drop in sales following the controversy over the promotion of Bud Light by Dylan Mulvaney .
Shares of Tilray Brands (TRLY) soared 36% on Tuesday after the maker of marijuana and craft beer products bought eight beer and beverage brands from Budweiser parent company Anheuser-Busch InBev (BUD).
Tilray announced that it would acquire Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery and Widmer Brothers Brewing, as well as Square Mile Cider Company and HiBall Energy. He said the transaction would include current employees, breweries and breweries associated with those brands. The company did not disclose the price, but added that it would be an all-cash deal and should be done by the end. of the year.
Tilray said the acquisition would make it the fifth-largest craft brewer in the United States, up from ninth place currently. It already owns craft brands such as Montauk Brewing Company and Sweetwater Brewing Company.
CEO Irwin Simon explained that this decision “solidifies both our position as a national leader and our share of the craft brewing market in the United States”. He called it “a big step forward in our diversification strategy”.
AB InBev's move came after the brewing giant reported lower revenue linked to lower sales following controversy over using transgender influencer Dylan Mulvaney to promote Bud Light. This led to a boycott of what had been the top-selling brand of beer in the country, and sales plummeted.
Tuesday earnings led shares of Tilray Brands are expected to hit their highest level since February. Anheuser-Busch InBev's American Depositary Receipts (ADRs) fell.