With federal cannabis legalization in the United States still a distant promise, Tilray Brands Inc. is expanding its beverage business line, acquiring eight beer brands to diversify its alcohol portfolio.
The transaction includes current employees, breweries and brewpubs associated with these brands. The purchase price will be paid in all cash and the transaction is expected to close in 2023.In the release, Tilray chief executive officer Irwin Simon said the acquisition marks a major step forward in the company’s diversification strategy.
Tilray, like several of its peer cannabis companies, moved into alcohol markets early after cannabis legalization in Canada in the hopes of one day using those brands as a cannabis product launch pad. While 23 states and Washington D.C. have approved adult-use cannabis, it remains illegal at the federal level. Nonetheless, Mr. Simon expressed optimism in Monday’s release.
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