Cannabis firm Tilray buys Breckenridge Distillery
Global cannabis company Tilray has acquired Colorado-based Breckenridge Distillery with an eye to creating THC-infused spirits.
Tilray, owner of cannabis-themed brewer Sweetwater, purchased the Bourbon whiskey maker in a deal worth US$102.9 million.
“We see tremendous potential for Breckenridge and our existing Sweetwater brand to complement each other, expanding their respective reach and driving further profitable growth in our beverage alcohol segment,” said Irwin D Simon, Tilray chairman and CEO.
Breckenridge Distillery was founded in 2008 by Bryan Nolt, and produces a portfolio of Bourbon whiskeys, vodkas, spiced rum and more.
Through the acquisition, Tilray said it hopes to develop cannabis-infused non-alcoholic distilled ‘spirits’, including Bourbon alternatives.
According to research firm Fact.MR, the global market for cannabis-infused drinks is expected to reach nearly US$6 billion by 2031.
The cannabis firm also sees the opportunity to expand the Breckenridge brand across the US, as the distiller currently derives 85% of its revenue from its home state of Colorado.
“We are excited to join Tilray and drive revenue growth as part of its global and leading CPG [consumer packaged goods] and cannabis-lifestyle platform,” Nolt commented.
“The award-winning spirits that have driven our success will unquestionably benefit from access to Tilray’s global distribution network and opportunities to expand into cannabis and edible-related products in the US.”
The deal is part of Tilray’s strategy to deliver US$4bn in revenue by the end of fiscal 2024.
Earlier this year, The Spirits Business explored the opportunities and challenges surrounding cannabis for drinks producers.