Canadian cannabis concern Tilray Brands (TLRY) is further expanding into craft beers with the acquisition of Scotland’s BrewDog for £33 million (US$44 million).
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The deal gives Tilray BrewDog’s global brand, brewing operations, and 11 brewpubs scattered across the United Kingdom (U.K.). In a news release, Tilray said the BrewDog acquisition will generate about $200 million in annual net revenue and $6 million to $8 million in additional earnings for it.
Tilray added that the deal expands its global beverage platform to $500 million in annual recurring revenue and should help to drive consolidated annual revenue to about $1.2 billion. This is not Tilray’s first expansion into beer and craft brewing.
Cannabis and Beer
In 2023, Tilray Brands bought eight craft beer brands from international brewing giant Anheuser-Busch InBev (BUD). That deal made Tilray among the largest craft brewers in the U.S. According to the U.S. Brewers Association, Tilray is today among the top five craft brewers in America.
Toronto-based Tilray has expanded into beer as sales of cannabis have declined sharply in recent years. Beer brands owned by Tilray include Breckenridge Brewery, Shock Top, Blue Point Brewing, 10 Barrel Brewing, Redhook Brewery, Widmer Brothers Brewing, and HiBall Energy, among others.
Is TLRY Stock a Buy?
Tilray’s stock has a consensus Hold rating among six Wall Street analysts. That rating is based on one Buy and five Hold recommendations issued in the last three months. The average TLRY price target of $9.61 implies 29.25% upside from current levels.
