Tilray Brands (NASDAQ:TLRY) is continuing its expansion into alcohol by buying worth of beer brands from Anheuser-Busch InBev (NYSE:BUD), makers of Bud Light.
The deal is part of a Tilray diversification effort that began with its purchase of rival Aphria in 2021. Aphria bought the parent of Sweetwater Brewing of Atlanta in 2020.
The news pleased Tilray investors, who sent the stock up almost 12% overnight. TLRY stock opened at $2.47 per share, a market capitalization of over $1.6 billion. Brands moving in the deal include Shock Top, Red Hook, and Widmer Brothers.
BUD stock fell 1% overnight. It opened at $55.92 and has a market cap of $98 billion.
Beer Me, Please
While The Wall Street Journal focused on and its problems with Bud Light, the deal is part of a continuing trend for both sides.
Big beer companies have been shedding small brands to concentrate on those with the biggest sales. Constellation Brands (NYSE:STZ), which sells $6 billion worth of beer a year , now the best-selling beer in the U.S., recently back to their former owners.
Tilray, meanwhile, has been beefing up its presence in beer while it
consolidates the cannabis business, which has proven smaller than previously thought. In addition to Aphria’s brands, Tilray , New York’s largest craft brewer.
Tilray has been able to make its moves thanks to earned from selling stock. The company sold over $850 million in stock over t.
Tilray expects its beer sales to triple as a result of the deal . It had during its most recent quarter. The Bud deal could make its beer business r than its cannabis business.
TLRY Stock: What Happens Next?
Tilray may be going from the frying pan into the fire. The craft beer business is , and sales are .
As of this writing, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
