Tilray Brands, Inc. ( “Tilray Brands” or the “Company”) (NASDAQ |
TSX: TLRY), today announced the acquisition of Montauk Brewing
Company (“Montauk Brewing”), the #1 craft brewer in Metro New York.
Montauk Brewing is well-known for its beloved product portfolio,
premium price point, and distribution across over 6,400 points of
distribution, including top national 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 be accretive to the Company’s adjusted EBITDA.
Montauk Brewing joins Tilray’s growing U.S.
beverage-alcohol segment, which already includes SweetWater Brewing
Company, the 10th largest craft brewer in the nation with
distribution across more than 40 states, the Alpine and Green Flash
iconic Southern California brands, and its leading lifestyle
bourbon and spirits brand, Breckenridge Distillery. To fully
optimize the value and strength of its U.S. craft beer portfolio,
Tilray also announced today that it has appointed veteran beer and
beverage industry executive Ty H. Gilmore as President of Tilray’s
U.S. beer business, a newly created position.
Irwin D. Simon, Chairman and CEO, said, "Tilray
Brands continues to strengthen our U.S. footprint and operations
through investments in and growing our portfolio of leading
lifestyle CPG brands that resonate powerfully 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 nationwide infrastructure and Montauk
Brewing’s northeast influence to significantly expand our
distribution network and drive profitable growth in our
beverage-alcohol segment. This distribution network is part of
Tilray’s strategy to leverage our growing portfolio
of U.S. CPG brands and ultimately to launch THC-based
product adjacencies upon federal legalization in the U.S.”
Mr. Simon continued, “We are excited to welcome
Montauk Brewing’s founders Vaughan Cutillo and Eric Moss, as well
as Terry Hopper, Montauk Brewing’s General Manager, to the Tilray
Brands family and I look forward to working closely with Ty Gilmore
to maximize the performance of our enormously powerful craft and
lifestyle beverage brand portfolio.”
Strategic and Financial
Benefits: Montauk Brewing joins SweetWater, Green Flash,
and Alpine brands as the cornerstones of Tilray’s coast to coast
craft beer segment and further strengthens the Company’s net
revenue. In addition to acquiring a strong brand and accretive
business, the acquisition is expected to deliver additional scale
in Tilray’s craft beer segment and positions Tilray Brands with a
stronger footprint in the northeast rounding out our footprint
across the U.S. market.
Expands Tilray’s Commercial
Opportunities in the U.S.: Upon federal legalization in
the U.S., Tilray plans to take full advantage of its strategic
infrastructure, operations and consumer loyal brands across beer,
spirits, and snack-food categories to parlay into THC-based
products and further expand its commercial opportunities.
Opportunity for Accelerated Growth of
Montauk Brewing Company: Montauk Brewing has enormous
potential to expand its customer base and grow throughout the U.S.
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.
Appointment of Ty H. Gilmore as
President of U.S. Beer Business: Gilmore joins Tilray from
Glazer’s Beer and Beverage, where he had served since 2020 as
executive vice president, overseeing sales, marketing and
operations across 11 distributors in the south. Prior to that, he
spent the majority of his nearly three-decade career at Diageo, in
positions of increasing seniority including seven years leading
national accounts.
As Tilray Brands continues to accelerate its
strategic growth opportunities, we ask all stockholders to
participate in the Company’s Annual Meeting of Stockholders to be
held on November 22, 2022. Tilray urges stockholders to
vote “FOR” all key proposals to ensure best
corporate governance practices and help the Company protect the
influence of its stockholders. Your support is important, no matter
how many or how few shares you own.
If you have any questions, or need any
assistance in voting your shares, please contact Morrow Sodali LLC
at (800) 449-0910 toll-free in the U.S. and Canada or (203)
658-9400 or by email at
TLRY@info.morrowsodali.com.
AdvisorsArlington Capital
Advisors served as exclusive financial advisor to Montauk Brewing
Company.
About Tilray Brands
Tilray Brands, 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 a
worldwide community to live their very best life, enhanced by
moments of connection and wellbeing. Tilray’s mission is to be the
most responsible, trusted and market leading cannabis consumer
products company in the world with a portfolio of innovative,
high-quality and beloved brands that address the needs of the
consumers, customers and patients we serve. 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
craft beverages.
For more information on how we open a world of
wellbeing, visit www.Tilray.com and follow @tilray on all social
platforms.
Forward-Looking
StatementsCertain 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: expected revenue
generation and accretion related to the Montauk acquisition; the
Company’s ability to expand upon distribution and sales of alcohol
products, including Montauk, in the U.S.; and expected expansion
opportunities upon U.S. federal legalization. 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.
____________________________1 Nielsen xAOC & Food 2022
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/85de5eae-30cf-4a93-a4f3-ece5365b67cc
Contacts
For media inquiries, please contact:
Berrin Noorata
news@tilray.com
For investor inquiries, please contact:
Raphael Gross 203-682-8253
Raphael.Gross@icrinc.com
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