Amidst numerous challenges, Anheuser-Busch Inc. has decided to sell eight of its beer brands to Tilray Brands Inc., a cannabis company specializing in cannabis lifestyle products and packaged goods. This move comes as Anheuser-Busch has experienced a decline in profits and a drop in sales of Bud Light. Controversies surrounding their marketing campaigns have contributed to these struggles.
The beer brands being sold include Shock Top, Breckenridge Brewery, Blue Point Brewing Company, Redhook Brewery, 10 Barrel Brewing Company, Widmer Brothers Brewing, Square Mile Cider Company, and HiBall Energy. Anheuser-Busch InBev, the parent company, reported a significant decrease in profits during the second quarter. Bud Light sales were particularly affected by controversies related to a campaign featuring transgender individual Dylan Mulvaney.
The North American revenue drop for Anheuser-Busch was about $395 million compared to the previous year. The controversy erupted when Mulvaney, a man identifying as a woman, starred in a video celebrating his first year of “womanhood” while holding a Bud Light can bearing his likeness. This caused a boycott initiated by conservatives.
As a consequence, Anheuser-Busch was forced to lay off hundreds of American workers in July, primarily due to the declining sales of Bud Light following the controversy. However, Tilray’s acquisition of these beer brands will enable them to become the fifth-largest craft beer company in the United States. Besides their cannabis-related holdings, Tilray also owns various craft beer brands, such as SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company, and Green Flash Brewing Company.
New Anheuser-Busch Faces Headwinds, Sells Beer Brands to Tilray Amidst Challenges.
