RE:RE:RE:Food for Thought Aphria-Tilray-New and improved TilrayAm not here to insult anyone, just here to post actual facts based on real due dilligence and experience. These posts just show there is no due delligence done at all and does not help the board. I have been in the MJ sector from the beginning, I have read and traded about every deals that have went down in the MJ sector. So, I have a pretty good grasp of the whole sector. Please do your due delligence. The Anheuser - Tilray was actually a joint venture similar to the Hexo-Molson Coors deal, which was DOA after it happened. To put it in perspective, the Tilray-Anheuser deal is actually worse than the Hexo-Molson deal. Look what has happened to Hexo sp. Now you can understand what happened to Tilray share price too after the so called joint venture. Please stop comparing Constellation-Canopy partnership. There is a huge difference. Anyways, I am just trying to post what I know so people have actual facts in front of them to invest or trade properly. I am not the bashing just trying to help with real facts, not some made up nonsense. My point is this APHA-Tilray deal is terrible for APHA shareholders and they should do everything in their power to vote it down. Anyways, here is a good read to get an understanding of Tilray-Anheuser deal to get the real facts.
Tilray announced on Wednesday after the market closed that it was partnering with giant beermaker Anheuser-Busch InBev (NYSE:BUD) to research nonalcoholic beverages containing tetrahydrocannabinol (THC) and cannabidiol (CBD). Although Tilray's share price did move higher on Thursday, its single-digit-percentage increase was relatively unremarkable for the highly volatile stock.
Why didn't investors get as excited about Tilray's deal with AB InBev as you might think they would? There are three main reasons.
1. Tilray isn't getting any money
When Constellation Brands (NYSE:STZ) first announced a partnership with Canopy Growth (NASDAQ:CGC) in 2017, the big alcoholic beverage maker forked over 245 million in Canadian dollars (around US$190 million) for a 9.9% stake in the marijuana grower. In August 2018, Constellation invested an additional $4 billion in Canopy.
And when tobacco giant Altria (NYSE:MO) announced that it had picked Cronos Group (NASDAQ:CRON) as its cannabis partner, there was also a lot of money changing hands. Altria invested around $1.8 billion for 45% ownership in Cronos.
But Tilray isn't getting a penny from AB InBev. Instead, the two companies are each putting up $50 million to form a joint venture. Their deal is more similar to the one between Molson Coors Brewing (NYSE:TAP) and Hexo (NYSE:HEXO). In August, the two companies announced that they were forming a joint venture with Molson Coors Canada owning a 57.5% controlling interest.
2. The deal is narrow in scope
The agreement between Tilray and AB InBev seems to be very narrow in scope. For example, Constellation and Canopy are partnering globally. Tilray and AB InBev are limiting their efforts only to Canada.
Molson Coors and Hexo are only focusing on the Canadian recreational marijuana market, too. But at least the companies plan to launch cannabis-infused beverages together, just as Constellation and Canopy plan to do. Tilray and AB InBev, however, stated that "decisions regarding the commercialization of the beverages will be made in the future."
That phrasing doesn't provide a warm-and-fuzzy feeling that Tilray has found itself a committed partner. Granted, Tilray and AB InBev could launch dozens of new products together. But they're definitely not committing to do so now, which makes their relationship appear to be even more loosey-goosey than the one between Molson Coors and Hexo.
3. There's a complicating twist
Why might AB InBev not want to establish too tight a relationship with Tilray? There's a twist in the story that makes things very interesting.
Altria owns nearly 10% of AB InBev. As mentioned earlier, Altria is also acquiring a 45% stake in Cronos Group. Does Cronos Group plan to develop cannabis-infused beverages? Yes. Would these beverages compete against any launched by Tilray? Yes. Would Altria prefer that one company that it partially owns not take market share away from another company that it partially owns? Again, the answer is very likely "yes."
This doesn't necessarily mean that Tilray and AB InBev won't decide to market products together. While Altria will heavily influence decisions made by Cronos Group, its position in AB InBev isn't large enough that the company can call all the shots with the beermaker. You have to think, though, that Altria's stake in Cronos Group could be a consideration when the commercialization decisions between AB InBev and Tilray are made.
Does the deal help Tilray?
No. Tilray's agreement with AB InBev isn't nearly as significant as the one between Constellation Brands and Canopy Growth. It isn't as significant as the one between Altria and Cronos Group. Heck, it doesn't mean as much as the Molson Coors-Hexo deal.
https://www.fool.com/investing/2018/12/21/why-tilrays-deal-with-anheuser-busch-inbev-didnt-e.aspx