This is not all about the Breweries and craft beer, it's about distribution of Delta 9 THC beverages. Distrubution chains are key to success. Tilray has that distrubution chain sealed.
The 2024 Farm Bill will be the biggest catalyst or biggest failure For Delta 9 THC beverages and the cannabis industry in the USA.
If we go by the results in Florida (Amendment 3) Hemp wins, along with Republican Desantis. If the trend keeps going, you will see the Hemp industry explode for the Hemp Farmers in the USA and the cannabis growers crumble. Not good for MSO's.
Republicans will back there farmer's for success, before they protect a Trulieve or Curaleaf for success as you witnessed in Florida .
As always, the risks are high. When you bet on The Federal Goverment in the USA.
Tilray paid only USD 23 million for Molson Coors’ craft breweries
USA | Craft brewery valuations must be at rock bottom. Tilray’s latest SEC filing (10 October) revealed that, in September, the cannabis firm spent USD 23 million, or USD 120 per barrel, on Molson Coors’ four craft breweries Terrapin, Hop Valley, Revolver and Atwater - a fraction of what Molson Coors must have paid.
When Molson Coors bought into Terrapin, Hop Valley and Revolver in 2016, craft beer sales were booming and transaction prices for regional craft breweries had gone through the roof, often hitting USD 1000 per barrel beer sold.
For example, Boston Beer merged with Dogfish Head in 2019 for USD 300 million. This worked out at around USD 1000 per barrel. The founders of Ballast Point, however, must have made a killing when they sold to Constellation Brands in 2015 for USD 1 billion, the equivalent of USD 3 600 per barrel, or 9 times the brewery’s revenue.
USD 23 million: a fire sale valuation
Assuming Molson Coors only paid a fraction of the then going rate, say USD 500 per barrel, it still forked out upwards of USD 85 million for this quartet of breweries, whose combined output, when acquired, stood at an estimated 170,000 barrels.
Currently, they sell some 200 000 barrels beer combined, which means they were acquired by Tilray for USD 120 per barrel - or less than half of their combined annual revenue of USD 60 million.
This just proves to show the industry’s sad state of affairs. A decade ago, craft beer entrepreneurs could bank on a profitable exit. Nowadays they must call themselves lucky if they find a buyer at all, especially if they are desperate to sell.