Anheuser-Busch InBev has decided to divest eight of its beer and beverage brands to Tilray Brands, a cannabis company.
This decision comes in the wake of a significant dip in U.S. Bud Light sales. The brands being sold include Shock Top, Blue Point, Breckenridge Brewery, Redhook Brewery, and HiBall Energy, among others.
The deal, whose financial details remain undisclosed, encompasses associated breweries, brewpubs, and their current staff. Andy Thomas, a top executive at Anheuser-Busch, revealed that Tilray had shown interest in these brands earlier in the year.
The beer giant recently disclosed a decline in sales and profits for the previous quarter, partly attributed to the backlash from Bud Light’s collaboration with transgender influencer, Dylan Mulvaney.
The company’s U.S. revenue saw a drop of over 10% in the last quarter compared to the same timeframe the previous year.
This decline was mainly due to the Bud Light volume drop, spurred by a conservative-led boycott of the brand. As a result of the controversy, Bud Light lost its title as America’s favorite beer to Modelo. Despite the U.S. setback, Anheuser-Busch’s global revenue increased by over 7% last quarter, thanks to robust sales in other nations.
