Tilray Brands acquires Montauk craft beer brand

Tilray Brands (NASDAQ | TSX: TLRY) announced on Press release the acquisition of Montauk Brewing Company, the most famous craft brewery in metropolitan New York. Montauk is known for its varied product portfolio with distribution in more than 6.400 points of sale. Tilray expects “the Montauk brewing deal to be positive, provide strong revenues and adjusted EBITDA, accelerating the Canadian company's expansion of its American brand portfolio.”

Montauk Brewing joins Tilray's growing US beverage and spirits segment, which already includes SweetWater Brewing Company, the nation's 10th largest craft brewery with distribution in more than 40 states, Southern California's iconic Alpine brands and Green Flash and spirits brand Breckenridge Distillery. To fully leverage the value and strength of its US craft beer portfolio, Tilray also announced today that it has named veteran beer and beverage industry executive Ty H. Gilmore President of Tilray's US beer business, a position newly created.

Montauk is currently distributed through major North American retailers such as Target, Whole Foods, Trader Joe's, Stop & Shop, King Kullen, Walmart, 7-Eleven, Costco, BJ's and Speedway. The acquisition is expected to add to Tilray's adjusted EBITDA, which is now expanding and strengthening its presence in the US.

Irwin D. Simon, President and CEO of Tilray, said, “Tilray Brands continues to strengthen US presence and operations through investments and growth of the portfolio of leading lifestyle CPG brands that powerfully resonate with consumers. Montauk Brewing is an iconic brand with leading market share and distribution in the northeast. Tilray Brands intends to leverage SweetWater's existing national infrastructure and Montauk Brewing's northeast influence to significantly expand the distribution network and drive profitable growth in our beverage and alcohol segment. This distribution network is part of Tilray's strategy to leverage our growing portfolio of US CPG brands and ultimately launch THC-based product adjacencies following US federal legalization.”

Irwin Simon added: “We are excited to welcome Montauk Brewing founders Vaughan Cutillo and Eric Moss, as well as Terry Hopper, Montauk Brewing General Manager, to the Tilray Brands family and look forward to working closely with Ty Gilmore to maximize the performance of our extremely powerful portfolio of craft and lifestyle beverage brands.”

Strategic and financial benefits
Montauk Brewing joins the SweetWater, Green Flash and Alpine brands as the mainstays of Tilray's coast-to-coast craft beer segment and further strengthens the company's net income. In addition to acquiring a strong brand and accretive business, the acquisition is expected to provide additional scale in Tilray's craft beer segment and position Tilray Brands with a stronger presence in the Northeast, completing its presence in the US market.

Expands Tilray's US Business Opportunities

After federal legalization in the US, Tilray plans to take full advantage of its strategic infrastructure, operations and consumer-loyal brands in the beer, spirits and snack categories to bet on THC-based products and further expand its commercial opportunities.

Montauk Brewing Company's Accelerated Growth Opportunity
Montauk Brewing has enormous potential to expand its customer base and grow in the US as a true national brand. Tilray Brands intends to leverage SweetWater's existing nationwide infrastructure to accelerate Montauk Brewing's distribution network and revenue growth.

Ty H. Gilmore Appointment as President of US Beer Business
Gilmore joins Tilray from Glazer's Beer and Beverage, where he has served since 2020 as Executive Vice President, overseeing sales, marketing and operations at 11 distributors in the South. Prior to that, Gilmore spent most of his nearly three-decade career at Diageo in roles of increasing seniority, including seven years leading national accounts.

Message to shareholders
Tilray ends its press release with a message to shareholders: “As Tilray Brands continues to accelerate its strategic growth opportunities, we ask all shareholders to attend the Company's Annual Shareholders' Meeting, to be held on November 22, 2022. Tilray asks shareholders to vote “FAVOR” on all major proposals to ensure best corporate governance practices and help the company protect the influence of its shareholders. Your support is important, no matter how many shares you own”, warns Tilray.

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Laura Ramos

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With a degree in Journalism from the University of Coimbra, Laura Ramos has a postgraduate degree in Photography and has been a Journalist since 1998. Winner of the Business of Cannabis Awards in the category "Journalist of the Year 2024", Laura was a correspondent for Jornal de Notícias in Rome, Italy, and Press Officer in the Office of the Minister of Education of the 21st Portuguese Government. She has an international certification in Permaculture (PDC) and created the street-art photography archive “Say What? Lisbon” @saywhatlisbon. Co-founder and Editor of CannaReporter® and coordinator of PTMC - Portugal Medical Cannabis, Laura directed the documentary “Pacientes” and was part of the steering group of the first Postgraduate Course in GxP's for Medicinal Cannabis in Portugal, in partnership with the Military Laboratory and the Faculty of Pharmacy of the University of Lisbon.

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