PORTLAND, Ore. — Anheuser-Busch Inc. has reached a deal to sell off eight of its brands, including two high-profile craft breweries acquired in the past decade, to a New York company that specializes in cannabis lifestyle products and packaged goods.
The deal between Tilray Brands Inc. (NASDAQ: TLRY) and Anheuser-Busch (NYSE: BUD) involves A-B transferring ownership of beer brands 10 Barrel Brewing Company of Bend, and Widmer Brothers Brewing and Square Mile Cider company, both based in Portland. The other A-B portfolio brands sold in the deal are Shock Top Brewing of St. Louis, Colorado-based Breckenridge Brewery, New York-based Blue Point Brewing Company, Seattle-based Redhook Brewery, and San Francisco-based energy drink company HiBall Energy.
Terms of the acquisition were not disclosed in a news release by Tilray, which said the deal will make it the nation's fifth-largest craft beer company, up from ninth place. In addition to its cannabis-related holdings, it also owns several craft beer brands, including SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company and Green Flash Brewing Company.
The deal comes at a time when the overall beer market is shrinking, and A-B itself struggles.
Last week, parent company Anheuser-Busch InBev reported second quarter net profits of $339 million, down from $1.6 billion a year earlier, driven by significant sales declines in the U.S., where its flagship Bud Light brand has come under fire for a polarizing partnership with a transgender social media influencer. U.S. sales fell by 10.5% in the second quarter from a year earlier, with sales to wholesalers down by 15% and sales to retailers declining by 14% for the period, primarily due to the volume decline of Bud Light. Last month, the company last month announced a corporate restructuring in which about 2% of its U.S. workforce will be cut.
