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TLRY - Tilray Buys 10 Brands from InBev
Posted on 8/8/23 at 9:12 pm
Posted on 8/8/23 at 9:12 pm
as predicted, …. InBev is dumping assets ….. good for Tilray
Tilray Brands Inc. shares jumped the most since February 2021 after the cannabis and consumer packaged goods company agreed to buy eight beer and beverage brands from the owner of Budweiser.
Tilray will purchase Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company and HiBall Energy from Anheuser-Busch InBev, the company said. The $85 million all-cash deal will make Tilray the fifth largest craft beer business in the US, up from ninth, it added.
“These beer and beverage brands possess the hallmarks of strong consumer loyalty and further diversify Tilray’s growing U.S. beverage alcohol segment,” the company said.
Shares of Tilray surged 36% Tuesday, while US shares of AB InBev fell 0.2%.
https://finance.yahoo.com/news/tilray-buy-eight-beverage-brands-173544802.html
Tilray Brands Inc. shares jumped the most since February 2021 after the cannabis and consumer packaged goods company agreed to buy eight beer and beverage brands from the owner of Budweiser.
Tilray will purchase Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company and HiBall Energy from Anheuser-Busch InBev, the company said. The $85 million all-cash deal will make Tilray the fifth largest craft beer business in the US, up from ninth, it added.
“These beer and beverage brands possess the hallmarks of strong consumer loyalty and further diversify Tilray’s growing U.S. beverage alcohol segment,” the company said.
Shares of Tilray surged 36% Tuesday, while US shares of AB InBev fell 0.2%.
https://finance.yahoo.com/news/tilray-buy-eight-beverage-brands-173544802.html
This post was edited on 8/8/23 at 9:14 pm
6
Posted on 8/8/23 at 10:50 pm to cadillacattack
quote:
as predicted, …. InBev is dumping assets
, what? They’re a $100B company. Selling a tiny division of brands for $85mm and framing it as “dumping assets” seems a little disingenuous.
Posted on 8/9/23 at 7:02 am to cadillacattack
Maybe it'll hit $4.20 today.
Posted on 8/9/23 at 7:54 am to cadillacattack
With the new acquisition of these bud light brands, the company announced that they’re changing their name to tilgay
Posted on 8/9/23 at 8:14 am to cadillacattack
I wonder if a little purchase of BUD and DIS would pay off in a few years. This outrage wont last for forever IMO, but there just isnt any telling when these companies will put their foot in their mouth again.
Posted on 8/9/23 at 8:47 am to tigerfoot
quote:
I wonder if a little purchase of BUD and DIS would pay off in a few years. This outrage wont last for forever IMO, but there just isnt any telling when these companies will put their foot in their mouth again.
Yep Ford survived the Edsel mistake, and Coke Cola survived the New Coke.
This post was edited on 8/9/23 at 8:48 am
Posted on 8/9/23 at 9:22 am to cadillacattack
TLRY popped on the news but looks like it’s coming back down to Earth. I’m wondering if this could be a long term play
This post was edited on 8/9/23 at 9:23 am
Posted on 8/9/23 at 10:25 am to tigerfoot
quote:
I wonder if a little purchase of BUD and DIS would pay off in a few years. This outrage wont last for forever IMO, but there just isnt any telling when these companies will put their foot in their mouth again.
Once these companies come out of their daze and dump their current leadership and go back to focusing on their products instead of social issues, they'll go on a tear. Question is, will that ever happen while the current large-scale financial backers demand that type of behavior from the companies. Some firms are removing ESG scoring, so maybe there's hope.
Might be worth a few dollars on a long-term play. The pendulum will eventually swing the other direction.
Posted on 8/9/23 at 5:48 pm to evil cockroach
quote:
TLRY popped on the news but looks like it’s coming back down to Earth. I’m wondering if this could be a long term play
I suspect Tilray is diversifying revenue while they await favorable cannabis legislation. Tilray is already well positioned to play a market leader role in cannabis infused beverages, … these brands likely mesh with their longer term strategy and buys them a longer runway for the near term.
This post was edited on 8/9/23 at 5:50 pm
Posted on 8/10/23 at 12:34 pm to slackster
quote:
as predicted, …. InBev is dumping assets
, what?
They’re a $100B company. Selling a tiny division of brands for $85mm and framing it as “dumping assets” seems a little disingenuous.
Altogether, they paid a good fraction of a billion dollars for those brands, then sold them for $85M. In a thin margin business like theirs, the top line is irrelevant, but 1% off the bottom is very relevant. InBev's net profit margin is only 2.24%.
This post was edited on 8/10/23 at 12:37 pm
Posted on 8/10/23 at 1:10 pm to TigerHornII
quote:
Altogether, they paid a good fraction of a billion dollars for those brands, then sold them for $85M. In a thin margin business like theirs, the top line is irrelevant, but 1% off the bottom is very relevant. InBev's net profit margin is only 2.24%.
What were the margins on this line of business? Not very high or else they would have sold for a lot more than $85mm.
Posted on 8/10/23 at 1:18 pm to cadillacattack
quote:
Widmer Brothers Brewing
GOAT Hefeweizen
Posted on 8/10/23 at 1:20 pm to slackster
quote:
What were the margins on this line of business? Not very high or else they would have sold for a lot more than $85mm.
That entire industry is low margin as I pointed out. InBev dropped hundreds of millions on buying those brands, then sold at $85M to apparently the only buyer they could find. Doesn't matter what margins are if there's no market for the businesses. Companies dump assets cheap when they see trouble coming and need cash in the bank.
Posted on 8/10/23 at 5:00 pm to TigerHornII
quote:
Companies dump assets cheap when they see trouble coming and need cash in the bank.
InBev had roughly $7B in cash on hand as of the most recent quarter.
I don’t think this sale has much to do with the current boycott. It likely has much more to do with the craft beer market slowdown. Craft beer has never been more popular, but it’s also never been more difficult to carve out any real market share.
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