Tilray Brands, Inc. (Nasdaq: TLRY) (TSX: TLRY) has acquired the remaining ownership of its Truss Beverage Co. cannabis-infused drink subsidiary from the renowned beer company Molson Coors Canada (NYSE: TAP) for an undisclosed amount.
Canada’s largest cannabis company announced the acquisition on Friday and now holds the 57.5 per cent stake previously held by Molson Coors in the former joint venture — making Truss Beverage Co. a wholly-owned subsidiary of Tilray.
The company says the acquisition positions it as a leader in the Canadian cannabis beverage market with a pro forma market share of approximately 36 per cent. Tilray believes it is a wise business decision because of the ever-evolving regulatory landscape in Canada and its positive implications for the beverage sector.
The cannabis distributor says THC-infused drinks may become available on tap in bars and restaurants in the near future, thereby propelling the market’s growth.
“This acquisition further strengthens Tilray’s #1 cannabis market share position in Canada and positions the company at the forefront of the adult-use beverage sector,” said Tilray Canada’s President Blair MacNeil.
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Tilray’s portfolio of beverage brands now includes XMG, Little Victory, Mollo and House of Terpenes. The company plans to release more beverages in the near future.
Tilray also significantly expanded its footprint in the alcoholic beverage market by acquiring eight brands from the major alcohol producer Anheuser-Busch Inbev SA (EBR: ABI) earlier this month. The $85 million transaction positioned the company as the fifth-largest craft beer operator in the United States.
Tilray became the largest cannabis company in Canada by revenue when it completed its acquisition of HEXO at the end of June. It also expanded its cannabis-infused drink footprint when its Solei subsidiary launched a line of cannabinoid-infused tea in May.
In the fourth quarter of the fiscal year ending May 31, the company’s revenue increased by 20 per cent year-over-year to $184 million and Tilray’s market presence is continuing to grow in multiple sectors.
Tilray’s stock went up by 0.56 per cent Friday to $3.60 on the Toronto Stock Exchange and Molson Coors shares rose by 1.4 per cent to US$63.03 on the New York Stock Exchange.
rowan@mugglehead.com
