Anheuser-Busch to Sell 8 Beverage Brands to Cannabis Company, Report Says

Anheuser-Busch in Baldwinsville, N.Y. (Photo: CNY Central)

WASHINGTON (TND) — Anheuser-Busch, the owner of Bud Light, is selling eight of its beverage brands, The Wall Street Journal reported Tuesday.

Tilray Brands, the purchaser, is currently the largest cannabis company in the world, but is working to push its way into the alcoholic beverage market. Its acquisition of the eight brands positions it to become the fifth largest craft beer brewer in the nation with a 5% share of the market.

Among the brands being sold to Tilray are Shock Top, Blue Point and Breckenridge Brewery, adding to the high-loyalty brands the company already owns, including SweetWater Brewery, Breckenridge Distillery and Alpine Beer Company.

The purchase amount, which Forbes reports as being $85 million, will be paid in cash by the end of the year. This figure stands in sharp contrast to the $300 million Tilray previously spent to acquire SweetWater in 2020.

Tilray CEO Irwin Simon cheered the transaction as a significant development for the company.

Today’s announcement both solidifies our national leadership position and share in the U.S. craft brewing market and marks a major step forward in our diversification strategy,” Simon said. “We are excited to work with the teams behind these iconic brands that command great consumer loyalty and have a history of delivering strong award-winning products with tremendous growth opportunities.”

The sale comes after Anheuser-Busch laid off hundreds of workers in July as sales of its flagship brew Bud Light continue to flounder. Controversy stemming from Bud Light’s previous partnership with transgender activist Dylan Mulvaney preceded $395 million in lost sales as consumers boycotted the brand.

Modelo has since replaced Bud Light as the top-selling beer brand in the country. Tilray now stands to triple its beer operations, increasing its output from 4 million cases to 12 million cases annually, Vinepair reports.