Shares of Tilray Brands experienced a significant surge on Tuesday morning following the announcement of its expansion in the alcohol industry. The U.S. pharmaceutical, cannabis, and consumer packaged goods company revealed that it will be acquiring eight popular beer and beverage brands from Anheuser-Busch InBev.
Among the brands included in this acquisition are Shock Top, Redhook Brewery, and Widmer Brothers Brewing. This news resulted in shares trading almost 28% higher at $2.84 as of 10:56 a.m. ET.
As part of this transaction, Tilray Brands will take ownership of the breweries and brewpubs associated with these well-known brands. The financial details of the acquisition have not been disclosed yet, but Tilray has confirmed that the purchase price will be paid in cash and the closing date is set for later this year.
This strategic move comes approximately a year after Tilray’s acquisition of Montauk Brewing, a craft brewer and hard seltzer maker, in November 2022.
Tilray’s beverage segment has played a crucial role in driving the company’s revenue growth. In its fourth quarter, the company reported a 20% increase in revenue to $184 million, surpassing analysts’ forecasts of $154 million (according to FactSet). This growth was largely fueled by the strong performance of its beverage alcohol segment, which generated a net revenue 43% higher than the previous year, reaching $32.4 million.
Despite these positive developments, Tilray still faces intense competition within Canada’s legal cannabis industry and encounters challenges due to the stalled federal reform in the U.S.
In June, Tilray completed its acquisition of Hexo, a cannabis consumer packaged goods company, aiming to strengthen its market position in the cannabis sector. The company currently holds a 13% market share in Canada.
