ST. LOUIS- Anheuser-Busch is letting go of some of it's major craft beer brands as it reportedly reached a deal to sell some of its brands to a cannabis company.
The global brewing company is set to sell eight of its major craft brands, which includes the likes of Shock Top and Blue Point to Tilray, a cannabis-based company based in New York that was founded in 2013.
Chris Shepard, Senior Editor at Beer Markets Insights, talked with KMOX's Michael Calhoun about Anheuser-Busch selling some major craft brands.
Shepard says the sale of Shock Top was the most shocking out of the brands sold by Anheuser-Busch company.
"(Shock Top) was one of those brands that Anheuser Busch built," Shepard said, "I think it was the only brand in that Busch built himself out of the portfolio."
Shepard says the Shock Top isn't exactly at its peak anymore, with the brand declining, with the brand being 1/9 of what it was back in the last decade or so.
"We estimate that Shock Top's peak year was 2014," Shepard, "At that point, the companies started picking up more craft brewers. I think what seems to be the case that it had a better chance of growing within craft with brands that it bought rather than Shock Top."
Alongside Shock Top, Tilray also acquired Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company, and HiBall Energy from Anheuser-Busch.
Tilray has also had some exposure in the craft beer business, with SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company and Green Flash Brewing Company already in the company's portfolio.
The deal will be paid in all cash and the transaction is expected to close in 2023, according to Tilray. The deal will make the company the fifth largest craft beer business position in the U.S.