Tilray Hit multiple birds with 1 acquisition After $TLRY’s agreement with $BUD to acquire 8 of its craft beer brands, it has hit multiple birds with 1 acquisition.
First, this places it as the 5th largest craft beer brewer in the US with a 5% market share!
Not only that but this deal should increase its annual alcohol purchases from 4 million to 12 million cases, and its annual revenue by $250 million, this will obviously substantially improve TLRY’s finances.
ALSO $TLRY’s high 48% alcohol gross margin - in comparison to its other businesses - is still below the industry’s standard 53.5%, but with these new additional brands, it could definitely grow its gross margins.
All that translates to $TLRY getting closer to profitability. But the real kicker is the distribution channels these 8 brands have and their locations. At the end of the day cannabis is at the core of $TLRY’s operations, now these channels are dispersed in the Northwest in close proximity to Canada. Most importantly, these channels are linked to key profitable locations like Oregon whose cannabis market is worth $1 billion, along with California whose cannabis market is worth $2.2 billion.
All that gives $TLRY an extra advantage to infiltrate and take over the US market once weed is fully legalized.
I’ve said it before, but let me say it again for my people in the back! $TLRY is a great long hold!
https://www.reddit.com/r/pennystocktoday/comments/15ljlrs/tlrys_4_birds_with_1_stone_bud_acquisition/?user_id=80202578968&web_redirect=true