A Big-Name Brewer Just Quit Craft Beer for Good

Tilray Brands recently added four craft brewers to its portfolio. What’s notable, however, isn’t who it’s buying but from whom.

By Jack Seemer

Published August 16, 2024

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Brewery acquisitions are a dime a dozen, so you’d be forgiven for glossing over Tilray Brands recently adding four craft labels to its growing portfolio.

However, what’s notable in this case isn’t just who it’s buying — Hop Valley Brewing Company, Terrapin Beer Co., Revolver Brewing and Atwater Brewery — but from whom.

Coors quits craft

The seller was none other than Molson Coors, Tilray Brands announced in a press release. Like many of the big guys, Molson Coors started purchasing craft brewers in the 2010s, starting with the San Diego brewery Saint Archer (which ceased production in 2022).

The “definitive agreement” makes Tilray one of the largest craft producers in country, as defined by the Brewers Association (BA). It will now brew more than 15 million cases per year across its expanded network of facilities; Terrapin is the largest addition of the bunch, producing around 80,000 barrels per year.

west coast ipa gear patrol lead full — Tilray has rapidly expanding its portfolio of beer brands. It also acquired the iconic Green Flash Brewing Co. in 2022.

Tilray has been on something of a spree. A year ago, it acquired eight other beer and beverage brands from Anheuser-Busch, including Shock Top and 10 Barrel Brewing Company. The company also owns Montauk Brewing Company and the iconic Green Flash Brewing Company, both acquired in 2022.

Tilray’s latest acquisition isn’t the only news to break. As first reported by Brewbound, Molson Coors will shut down its in-house craft brand AC Golden by the end of September. The brewery operated out of the original Coors Brewery in Golden, Colorado.

Boom or bust

Together with the sale, it looks like Molson Coors plans to step away from craft completely, a sentiment certainly echoed by its chief commercial officer, Michelle St. Jacques.

“While we love these craft breweries and the people behind them, this move allows us to … focus our time, energy and resources behind the initiatives we believe will best help us meaningfully grow our US above premium portfolio in beer and beyond beer,” St. Jacques said, referring to brands like Blue Moon.

inside atwater brewery — Detroit’s Atwater is the smallest operation heading to Tilray, however, it is the only one currently growing in sales.

Detroit’s Atwater, the smallest brand going to Tilray, is the only one of the four said to be growing as of 2024. According to Brewbound, Terrapin, Hop Valley and Revolver all have decreases in sales ranging from 5.7 to 18.3 percent since the beginning of the year.

Is craft over?

Beer as a whole feels the hurt. Last year, production of beer dropped five percent nationwide, while craft beer dropped one percent, according to the BA.

Though the latter number may seem insignificant, it’s worst figure since the organization starting tracking data in the 1970s. Objectively speaking, fewer breweries are opening than before, while the rate of closure creeps upward. It’s not a positive sign, no matter how you slice it.

outside of athletic brewing brewery — Alternative beer brand like Athletic Brewing are growing. The non-alcoholic beer specialist, now valued at close to $1 billion, just took over the former facility of Ballast Point.

That said, there’s still reason to be optimistic as a beer lover. Clearly, Tilray thinks they can turn the ship around, while alternative beer brands like Athletic Brewing are exploding in popularity.

Craft beer will never go away completely. But it may soon look — and taste — a little different.

The brewer, which specializes in non-alcoholic beer, just doubled its valuation to $800 million after a recent round of equity financing. It also took over the former facility of Ballast Point — an iconic brewery formerly owned by Constellation Brands that was itself the subject of a selloff in 2019.

Craft beer will never go away completely. But it may soon look — and taste — a little different. Time will tell if that’s a good thing or not.