Cannabis Maker Tilray’s Shares Rise After Buying 8 Anheuser-Busch InBev Brands

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Key Takeaways

  • Tilray Brands shares took off after it purchased 8 beer and other beverage brands from Anheuser-Busch InBev for an undisclosed price.
  • Tilray said the purchase will strengthen its craft beer offerings and help the company diversify.
  • AB InBev made the deal after reporting a drop in sales following the controversy over Dylan Mulvaney’s promotion of Bud Light.

Shares of Tilray Brands (TRLY) skyrocketed 36% on Tuesday after the maker of marijuana products and craft beer purchased eight beer and beverage brands from Budweiser parent Anheuser-Busch InBev (BUD).

Tilray said it would be acquiring Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, and Widmer Brothers Brewing, as well as Square Mile Cider Company and HiBall Energy. It indicated the transaction would include current employees, breweries, and brewpubs associated with those brands. The company did not disclose the price, but added that it would be an all-cash deal and is expected to close by the end of the year. 

Tilray said the acquisition will make it the fifth-largest craft brewer in the U.S., up from ninth place currently. It already owns craft brands such as Montauk Brewing Company and Sweetwater Brewing Company.

CEO Irwin Simon explained that the move “both solidifies our national leadership position and share in the U.S. craft brewing market.” He called it a “major step forward in our diversification strategy.”

The move by AB InBev came after the brewing giant reported slumping revenue related to a drop in sales following the controversy over the use of transgender influencer Dylan Mulvaney to promote Bud Light. That led to a boycott of what had been the top-selling beer brand in the country, and sales plunged.

Tuesday’s gains led shares of Tilray Brands to hit their highest level since February. American Depositary Receipts (ADRs) of Anheuser-Busch InBev fell.

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