Anheuser-Busch InBev is selling eight beer and beverage brands to cannabis company Tilray Brands, just one month after the beer giant laid off hundreds of its U.S. workers amid a slump in U.S. sales of Bud Light.
Anheuser-Busch will sell Shock Top, Blue Point, Breckenridge Brewery, Redhook Brewery, HiBall Energy, and other brands to the cannabis company for an undisclosed amount, Tilray Brands announced. The sale, which is expected to close this year and will be paid in cash, includes breweries and brewpubs associated with the brands, as well as current employees.
Andy Thomas, president of the high-end business unit at Anheuser-Busch, told the Wall Street Journal that Tilray first expressed interest in the brands and breweries earlier this year.
Last week, Anheuser-Busch reported a drop in sales and profit in the last quarter as it continues to face fallout over Bud Light’s controversial partnership with transgender influencer Dylan Mulvaney.
Anheuser-Busch’s revenue in the U.S. fell more than 10 percent last quarter compared to the same period last year, according to its third-quarter earnings report. The company said the drop was “primarily due to the volume decline of Bud Light” amid the conservative-led boycott of the brand. Operating profit at the U.S. unit dropped by nearly 30 percent as well.
The controversy began when Bud Light launched a minor creative collaboration with trans influencer Mulvaney, who posted an Instagram video surrounded by the iconic blue cans in a bathtub. The post caused a backlash among the brand’s blue-collar base. The fallout has become so widespread that Modelo dethroned Bud Light from its spot as America’s most popular beer and led HSBC to downgrade Anheuser-Busch stock. Meanwhile, Constellation Brands, which sells Modelo in the U.S., saw 7.5 percent growth in beer volumes in the quarter ending on May 31 compared to the same period last year.
Anheuser-Busch’s total revenue last quarter was up more than 7 percent, as sales of its other beers in other countries helped make up for the Bud Light boycott in the U.S.
“In 2Q23, our mainstream portfolio delivered a mid-single digit revenue increase as double-digit growth in South Africa and Colombia was partially offset by the revenue decline of Bud Light in the US,” the report explains.
Meanwhile, retail sales of Bud Light had dropped by 42 percent in some U.S. cities in the four-week period ending on July 22, according to Nielsen IQ data analyzed by the consulting firm Bump Williams.