Tilray Brands - 4th Largest Craft Brewery In the USA, with distribution ever expanding through the USA and beyond.
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Tilray Brands chairman and CEO Irwin D. Simon said when the transaction closes later this month, the growing brewery platform will add six brewhouses, taking its total to 20 breweries across the country, with production of more than 1 million barrels of beer – 15 million case equivalents – annually.
This would land Tilray firmly in the No. 4 spot among BA-defined craft breweries, nudging out Gambrinus (Shiner, Trumer), which produced 483,929 barrels in 2023, according to the BA.
Simon added that the company’s distribution business will expand by more than 20%.
“There’s places today that are selling these brands that we’re not,” he continued. “That will help us get additional distribution there.”
Asked about the timing of the deal in relation to the 2023 transaction with A-B, Simon said “when something comes up, you’ve got to react.”
“As you look at these businesses, there is the brewhouses, there is the on-premise, there’s the retail part of it, and then there’s the manufacturing,” he said. “So there’s a lot to do, but the good news is we have a year under our belt of a good playbook that we put in place with the ABI pieces. Now this is less than half the size, probably less, than what ABI was. So we felt we could absolutely integrate this and digest this.”
Simon said Tilray is no longer on a “transitional services agreement” with A-B and has shifted production of Tilray products to its own facilities and has its own infrastructure in place for sales, marketing, merchandising, finance and operations.
Unlike the A-B deal, the four soon-to-be acquired brands produce 98% of their volume at their own breweries, and not at Molson Coors’ larger production facilities, so a continued service agreement is unnecessary, Simon said.
Simon stressed that Tilray isn’t “out there looking to buy anything.”
“We get offers every day to buy certain craft brands, but we have a strategic plan of what we want and what makes sense,” he said.
For future Tilray acquisitions, the company is more interested in larger roll-ups of craft brands than one-offs, Simon said.
“There’s a lot of outreach to us about wanting to buy, and we’re not going to buy the ones and twos,” he said. “If anything, we’re going to have to have scale. And I think what always makes sense to us, if there was ever more spin-offs of five, six brands that we could consolidate. But we’re not out there to buy ones, onesies and twosies. We’re not a collection of craft brands.”
Scale for Tilray is in the “$50 to $100 million range,” Simon said, adding that the Molson Coors brands “will not be our last acquisition.”
https://www.brewbound.com/news/tilray-to-acquire-4-craft-brands-from-molson-coors/