International cannabis player Tilray scoops up another craft brewery

Tilray Brands continued its pivot from cannabis into alcohol Monday when the multinational conglomerate acquired key assets of U.K.-based craft beer maker BrewDog for £33 million ($60.5 million), the company said Monday.

The deal includes BrewDog’s global brand, intellectual property, brewing operations and 11 brewpubs across the U.K. and Ireland, according to a company news release.

Tilray is negotiating separately for BrewDog’s Australian and American assets.

Shares in publicly traded Tilray, headquartered in New York and Leamington, Ontario, dipped slightly on the news to $7.64 during midday trading Monday.

That’s down from $7.89 at the close of markets Friday.

BrewDog is Tilray’s latest beer buy

It’s the latest in a series of craft brewers added to Tilray’s portfolio, a pivot the company began after it missed an ambitious revenue target as federal cannabis legalization in the U.S. stalled out.

Tilray went on a brewery-buying spree between 2020 and 2023, acquiring at least a dozen craft-beer brands.

The deals included:

• A $300 million purchase in November 2020 of SweetWater Brewing Co. in Georgia.
• A $5.1 million acquisition in late 2021 of California brands Alpine Beer Co. and Green Flash Brewing Co.
• An $85 million purchase in mid-2023 of eight Anheuser-Busch brands.
• A November 2023 takeover of New York-based Montauk Brewery Co. with undisclosed financial terms.

Simon said during an April 2023 earnings call that the company built its American alcohol business to adapt to delays in U.S. marijuana reform.

Its beverage portfolio is now nearly three times as big as its cannabis operation, according to a company presentation from last fall.

Tilray also expanded operations in the hemp-derived THC space.

The acquisition comes as BrewDog faced mounting losses. Thirty-eight bars that are not part of the acquisition will close.

No returns for BrewDog’s equity holders

BrewDog’s transfer to a U.S. company has disappointed some loyal fans and investors, particularly those who participated in the brand’s early crowdfunding campaigns, according to The Guardian.

BrewDog’s equity holders, including “equity for punks” investors, will not see a return on their investments, The Guardian reported.

Tilray plans to refocus BrewDog on its craft beer roots and return it to profitability by 2027, the company said Monday.

Tilray says its beverage portfolio will generate $500 million in annual revenue following the acquisition.

Tilray has cannabis operations in 20 countries including Canada, where it claims top market share across several product categories.

However, Tilray is waiting for major reforms, such as federal legalization, before it jumps into the U.S. market.