Anheuser-Busch InBev announced Monday it will slash eight craft brands from its portfolio in a deal with Tilray, a cannabis company, that is expected to close next month.
The craft beers involved in the deal include Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company, and Hiball Energy, which was discontinued earlier this year. Employees, breweries, and brewpubs will be part of the deal, according to Tilray.
“Today’s announcement both solidifies our national leadership position and share in the U.S. craft brewing market and marks a major step forward in our diversification strategy,” said Tilray Brands Chairman and CEO Irwin Simon. “We are excited to work with the teams behind these iconic brands that command great consumer loyalty and have a history of delivering strong award-winning products with tremendous growth opportunities. Tilray is fully committed to invest in and champion the future of the U.S. craft beer industry by fueling new innovation that excites and further accelerates the growth of its consumer base.”
The move comes amid a conservative boycott over Bud Light’s partnership with transgender activist Dylan Mulvaney, which has seen the brand experience double digit drops in sales. During the week that ended July 29, sales plunged 25.9 percent, continuing a downward trend that began April 1. For the past three months, Modelo has even dethroned Bud Light as the nation’s top-selling beer and is expected to take the No. 1 spot for the year by the end of the month, according to Bump Williams Consulting.
The decision to slash its craft beer portfolio comes one month after Anheuser-Busch announced it would lay off 2 percent of its workforce to help “ensure that [the] organization continues to be set for future long-term success,” CEO Brendan Whitworth said about the “difficult but necessary” move.
