Cananbis company Tilray buys four Molson Coors brewers as it looks to become 'beacon for craft brands'

By Steve Gelsi

Deal comes as Tilray has drawn praise for diversifying its offerings beyond cannabis

Tilray Inc.'s stock rose Tuesday after the Canadian cannabis company said it is paying an undisclosed sum for four craft-beer brewers from Molson Coors Beverage Co. to add to its presence in the U.S. alcoholic-beverage market.

Tilray (TLRY) said it's buying Eugene, Ore.-based Hop Valley Brewing Co.; Athens, Ga.-based Terrapin Beer Co.; Gransbury, Texas-based Revolver Brewing; and Detroit-based Atwater Brewery. All four are currently owned by Molson Coors (TAP).

Tilray's stock rose 4.5% on Tuesday.

Tilray Chief Executive Irwin Simon said the company plans to accelerate growth in the four brands as it eyes market opportunities in the U.S.

"This will not be our last deal," Simon told MarketWatch.

Talks with Molson Coors about a deal began in June, he said.

The transaction marks Tilray's latest acquisition of an alcoholic-beverage business, starting with its purchase of Sweetwater Brewing Co. in 2020, Simon noted. The company also acquired eight brands from Anheuser-Busch InBev (BUD) last summer for an undisclosed sum.

As Tilray pursues a goal of becoming a "beacon for craft brands," it's adding the Molson Coors names to grow its presence in key geographic areas where it has not been previously, Simon said. In purchasing the Molson Coors brands, it will now own the No. 1 craft brewer in the Pacific Northwest as well as in Georgia, he added.

In addition to the aforementioend brands, Tilray also owns 10 Barrel Brewing Co., Montauk Brewing Co., Shock Top, Alpine Beer Co., Blue Point Brewing Co., Green Flash Brewing Co., Breckenridge Brewery and Distillery, Redhook Brewing Co., Widmer Brothers Brewing, Square Mile Cider Co., HiBall Energy, and Happy Flower CBD.

For its part, Molson Coors said the deal with Tilray is part of an effort to streamline its business.

"While we love these craft breweries and the people behind them, this move allows us to do exactly that - focus our time, energy and resources behind the initiatives we believe will best help us meaningfully grow our U.S. above-premium portfolio in beer and beyond beer," Molson Coors Commercial Chief Michelle St. Jacques said in a statement.

Tilray earned praise in its most recent quarter for its efforts to diversify beyond the Canadian cannabis space.

Also read: Cannabis company Tilray made a huge bet on craft beer. It's already paying off.

-Steve Gelsi

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

08-13-24 1603ET

Copyright (c) 2024 Dow Jones & Company, Inc.