Tilray, Inc. (“Tilray” or the “Company”) (NASDAQ | TSX: TLRY), a
leading global cannabis-lifestyle and consumer packaged goods
company inspiring and empowering the worldwide community to live
their very best life, today announced the strategic acquisition of
Breckenridge Distillery, a leading distilled spirits platform
located in Breckenridge, Colorado widely-known for its
award-winning bourbon whiskey collection and innovative craft
spirits portfolio. Tilray expects the acquisition to be immediately
accretive to EBITDA.
Irwin D. Simon, Chairman and CEO, said,
"Tilray’s strength lies in our ability to identify and
significantly expand leading CPG lifestyle brands that resonate
powerfully with consumers. Breckenridge Distillery is an iconic
addition to our platform in this respect based on its portfolio of
award-winning spirits, passionate consumer engagement, and a strong
sales and distribution network. 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.”
Mr. Simon continued, “More generally, the
Breckenridge Distillery transaction is consistent with Tilray’s
strategy of leveraging our growing portfolio of U.S. CPG brands to
launch THC-based product adjacencies upon federal legalization in
the U.S. These significant, diversified revenue streams are key to
delivering on our ultimate goal of industry leadership with $4
billion in revenue by the end of fiscal year 2024.”
Bryan Nolt, Breckenridge Distillery’s Founder
and Chief Executive Officer, added, “We are excited to join Tilray
and drive revenue growth as part of its global and leading CPG and
cannabis-lifestyle platform. 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 U.S.”
Founded in 2008 by Mr. Nolt, the Breckenridge
Distillery is most widely known for its blended bourbon whiskey, a
high-rye mash American-style whiskey, and a collection of artisanal
spirits offering that brings to life the best that Colorado has to
offer. Breckenridge Distillery’s consumer engagement strategy is
defined and differentiated through unique experiential marketing
and highly-effective social media outreach and includes a lucrative
and exclusive partnership as the hometown Bourbon of the Denver
Broncos. Among other accolades, Breckenridge’s blended bourbon
whiskey is a 4x winner of Best American Blended Whiskey from the
World Whiskies Awards. In 2018, Breckenridge was awarded the
prestigious Icons of Whisky award for Brand Innovator of the
Year by Whisky Magazine.
Under the terms of the acquisition, the sellers
of Breckenridge were led by Sababa Partners I LLC, an entity
controlled by Sir Martin E. Franklin.
Strategic and Financial
Benefits
In addition to acquiring a strong brand and
accretive business, this strategic acquisition delivers additional
scale in the beverage alcohol categories and further positions
Tilray with infrastructure and a larger footprint in the U.S.
market upon federal cannabis legalization.
Tilray further believes the acquisition will
provide several financial and strategic benefits, including:
Joins Sweetwater to Further Diversify
and Grow Tilray’s Beverage Alcohol Business: Breckenridge
Distillery joins SweetWater Brewing Company as the cornerstones of
Tilray’s beverage alcohol segment and further diversifies the
company’s net revenue mix. Breckenridge Distillery is expected to
be immediately margin accretive with Breckenridge generating
adjusted EBITDA margins of approximately 25 percent.
Provides for Additional Significant
Innovation Opportunities while Expanding Tilray’s Addressable
Market in the U.S.: When federally permissible, Tilray
believes the acquisition of Breckenridge Distillery will enable
Tilray to commercialize new and innovative products through the
development of non-alcoholic distilled spirits, including bourbon
whisky, that is infused with cannabis.
Opportunity for Accelerated Growth of
Breckenridge Distillery:With more than 85% of its revenue
generated in Colorado, Breckenridge Distillery has enormous
potential to expand its customer base and grow throughout the U.S.
as a true national brand. To that end, Tilray intends to leverage
SweetWater’s existing nationwide infrastructure to accelerate
Breckenridge Distillery’s and create new, greatly-expanded consumer
awareness and product adoption.
About TilrayTilray, Inc.
(Nasdaq: TLRY; TSX: TLRY) is a leading global cannabis-lifestyle
and consumer packaged goods company with operations in Canada, the
United States, Europe, Australia, and Latin America that is
changing people's lives for the better – one person at a time – by
inspiring and empowering the worldwide community to live their very
best life by providing them with products that meet the needs of
their mind, body, and soul and invoke a sense of wellbeing.
Tilray’s mission is to be the trusted partner for its patients and
consumers by providing them with a cultivated experience and health
and wellbeing through high-quality, differentiated brands and
innovative products. A pioneer in cannabis research, cultivation,
and distribution, Tilray’s unprecedented production platform
supports over 20 brands in over 20 countries, including
comprehensive cannabis offerings, hemp-based foods, and alcoholic
beverages.
For more information about Tilray, visit
www.Tilray.com.
Forward-Looking Statements
Certain statements in this communication that
are not historical facts constitute forward-looking information or
forward-looking statements (together, “forward-looking statements”)
under Canadian securities laws and within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, that are intended
to be subject to the “safe harbor” created by those sections and
other applicable laws. Forward-looking statements can be identified
by words such as “forecast,” “future,” “should,” “could,” “enable,”
“potential,” “contemplate,” “believe,” “anticipate,” “estimate,”
“plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and
the negative of these terms or similar expressions, although not
all forward-looking statements contain these identifying words.
Certain material factors, estimates, goals, projections or
assumptions were used in drawing the conclusions contained in the
forward-looking statements throughout this communication.
Forward-looking statements include statements regarding our
intentions, beliefs, projections, outlook, analyses or current
expectations concerning, among other things: the Company’s ability
to become the world's leading cannabis-focused consumer branded
company with our target of $4 billion of revenue by 2024;
expectations regarding profitable revenue growth; and the Company’s
ability to commercialize new and innovative beverage products. Many
factors could cause actual results, performance or achievement to
be materially different from any forward-looking statements, and
other risks and uncertainties not presently known to the Company or
that the Company deems immaterial could also cause actual results
or events to differ materially from those expressed in the
forward-looking statements contained herein. For a more detailed
discussion of these risks and other factors, see the most recently
filed annual information form of Tilray and the Annual Report on
Form 10-K (and other periodic reports filed with the SEC)
of Tilray made with the SEC and available on EDGAR. The
forward-looking statements included in this communication are made
as of the date of this communication and the Company does not
undertake any obligation to publicly update such forward-looking
statements to reflect new information, subsequent events or
otherwise unless required by applicable securities laws.
ContactsFor media inquiries, please
contact:Berrin Nooratanews@tilray.com
For investor inquiries, please
contact:Raphael Gross
203-682-8253Raphael.Gross@icrinc.com
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