Tilray Brands Completes Acquisition of Atwater Brewery From Molson Coors Beverage Company

Rhea-AI Summary

Tilray Brands (Nasdaq: TLRY; TSX: TLRY) has completed the acquisition of Atwater Brewery from Molson Coors Beverage Company (NYSE: TAP). This strategic move expands Tilray's presence in the Great Lakes region and strengthens its position in the craft beer industry. Atwater Brewery, known for its rich history and loyal following in Michigan, joins Tilray's diverse beverage portfolio, which includes notable craft beer, spirits, and non-alcohol brands.

CEO Irwin D. Simon expressed enthusiasm about leveraging Tilray's resources to drive growth and expand distribution for Atwater's brews. This acquisition aligns with Tilray's strategy to diversify its product offerings and enhance its market presence in the beverage sector.

Positive

• Acquisition expands Tilray's market presence in the Great Lakes region
• Strengthens Tilray's position in the craft beer industry
• Adds a renowned brewery with loyal customer base to Tilray's portfolio
• Potential for growth and expanded distribution of Atwater's products

Negative

• None.

Financial Analyst

Tilray's acquisition of Atwater Brewery from Molson Coors is a strategic move to expand its craft beer portfolio and strengthen its position in the Great Lakes region. This deal aligns with Tilray's diversification strategy beyond cannabis into the broader beverage market. While financial terms weren't disclosed, the acquisition likely provides synergies in distribution and production.

For investors, this represents Tilray's continued effort to reduce reliance on cannabis and tap into the more stable craft beer market. The move could potentially improve revenue streams and market share in the competitive beverage industry. However, the impact on Tilray's financials remains to be seen, as integration costs and potential revenue contributions are yet unknown.

Market Research Analyst

The craft beer market in the U.S. has been experiencing steady growth, with consumers increasingly favoring unique, local brews. Atwater Brewery's strong presence in Michigan provides Tilray with a solid foothold in a key market. This acquisition fits into the broader trend of consolidation in the craft beer industry, as larger companies seek to capitalize on the popularity of local brands.

Tilray's expanding beverage portfolio, now including Atwater, positions the company to compete more effectively against other diversified beverage giants. This move could potentially lead to increased market share and improved brand recognition in the competitive alcoholic beverage sector, which could be particularly valuable as the company navigates the evolving cannabis market landscape.

NEW YORK, Sept. 12, 2024 (GLOBE NEWSWIRE) -- Tilray Brands, Inc. (“Tilray”, “our”, “we” or the “Company”) (Nasdaq: TLRY; TSX: TLRY), a global lifestyle and consumer packaged goods company, has successfully completed the previously announced acquisition of Atwater Brewery, from Molson Coors Beverage Company (“Molson Coors”) (NYSE: TAP).

Irwin D. Simon, Chairman and Chief Executive Officer of Tilray Brands, said, "Atwater Brewery is a renowned craft brewery with a rich history and a loyal following in Michigan. This acquisition expands our reach in the Great Lakes region and further strengthens our position in the craft beer industry. We are excited to welcome Atwater Brewery to Tilray Brands and are committed to leveraging our expertise and resources to drive growth, expand distribution, and provide beer lovers with access to Atwater's exceptional brews.”

Atwater Brewery joins Tilray Brands’ impressive beverage portfolio which includes leading craft beer, spirits, and non-alcohol beverage brands such as SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company, Green Flash Brewing Company, Shock Top, Breckenridge Brewery, Breckenridge Distillery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewing Company, Widmer Brothers Brewing, Hop Valley Brewery, Terrapin Beer Co, Revolver Brewery, Square Mile Cider Company, HiBall Energy, Happy Flower CBD, along with Canada's top recreational cannabis and THC beverage brands, Mollo and XMG.

Advisors
TD Securities acted as financial advisor, and DLA Piper LLP (US) acted as external legal counsel to Tilray Brands.

About Tilray Brands
Tilray Brands, Inc. (“Tilray”) (Nasdaq: TLRY; TSX: TLRY), is a leading global lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is leading as a transformative force at the nexus of cannabis, beverage, wellness, and entertainment, elevating lives through moments of connection. Tilray’s mission is to be a leading premium lifestyle company with a house of brands and innovative products that inspire joy, wellness and create memorable experiences. Tilray’s unprecedented platform supports over 40 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.

For more information on how we are elevating lives through moments of connection, visit Tilray.com and follow @Tilray on all social platforms.

Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this communication that are not historical facts constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under U.S. and Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by words such as “forecast,” “future,” “should,” “could,” “enable,” “potential,” “contemplate,” “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections, or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication. Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: the timing and certainty of closing the acquisition; expected sales, distribution and market share growth, revenue generation, synergies and accretion related to the acquisition; Tilray’s ability to expand upon distribution and sales of alcohol products in the U.S.; Tilray’s ability to enhance the value of its brand portfolio; and Tilray’s anticipated investments in particular businesses, including craft beer. Many factors could cause actual results, performance, or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to Tilray or that Tilray deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of these risks and other factors, see the most recently filed Annual Report on Form 10-K (and other periodic reports filed with the SEC) of Tilray made with the SEC and available on EDGAR and in Tilray’s Canadian securities filings. The forward-looking statements included in this communication are made as of the date of this communication, and, while Tilray believes that information provides a reasonable basis for these statements, these statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. You should not rely upon forward-looking statements or forward-looking information as predictions of future events and Tilray does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.

Media: news@tilray.com

Investors: investors@tilray.com

FAQ

What company did Tilray Brands (TLRY) acquire in September 2024?

Tilray Brands (TLRY) acquired Atwater Brewery from Molson Coors Beverage Company in September 2024.

How does the Atwater Brewery acquisition impact Tilray's (TLRY) market presence?

The acquisition expands Tilray's reach in the Great Lakes region and strengthens its position in the craft beer industry.

What is the strategic importance of Atwater Brewery for Tilray (TLRY)?

Atwater Brewery adds a renowned craft brewery with a loyal following in Michigan to Tilray's beverage portfolio, enhancing its market presence and product offerings.

Who acted as financial advisor to Tilray Brands (TLRY) for the Atwater Brewery acquisition?

TD Securities acted as financial advisor to Tilray Brands for the Atwater Brewery acquisition.