Canadian cannabis and pharmaceutical powerhouse Tilray continues to secure its footing in the US with the acquisition of Breckenridge Distillery in Colorado. The publicly traded cannabis company announced its acquisition of the award-winning distillery last week. Purchasing Breckenridge is the latest in a series of strategic moves by Tilray aimed at cornering the US cannabis market in its infancy.

“Tilray’s strength lies in our ability to identify and significantly expand leading CPG lifestyle brands that resonate powerfully with consumers,” explained Tilray’s Chairman and CEO, Irwin D. Simon. “Breckenridge Distillery is an iconic addition to our platform in this respect based on its portfolio of award-winning spirits, passionate consumer engagement, and a strong sales and distribution network.”

Breckenridge Distillery is located in the iconic ski town of Breckenridge, Colorado, nestled high in the Rocky Mountains. At an elevation of 9,600 feet, it is known as the “World’s Highest Distillery.” The title is likely also a nod to Colorado’s lax regulations surrounding the use of marijuana. Recreational marijuana use has been legal in Colorado since 2012 and medical marijuana was legalized in the state in 2000, more than 20 years ago.

“More generally, the Breckenridge Distillery transaction is consistent with Tilray’s strategy of leveraging our growing portfolio of U.S. CPG brands to launch THC-based product adjacencies upon federal legalization in the U.S.,” Simon said. “These significant, diversified revenue streams are key to delivering on our ultimate goal of industry leadership with $4 billion in revenue by the end of fiscal year 2024.”

Breckenridge Distillery has won numerous awards for its diverse portfolio of whiskey products including Icons of Whisky’s coveted Brand Innovator of the Year award in 2018. The distillery produces over a dozen bottled whiskeys, several varieties of vodka, as well as an aquavit, a gin, a rum and a bitter liqueur.

By acquiring well-known US companies now, while the country’s cannabis laws are still evolving, Tilray is positioning itself to be a leader in the US cannabis market as soon as federal legalization occurs.

“We see tremendous potential for Breckenridge and our existing SweetWater brand to complement each other, expanding their respective reach and driving further profitable growth in our beverage alcohol segment,” Simon stated.

Atlanta-based SweetWater Brewing Company was purchased by Canadian cannabis company, Aphria, in 2020. Shortly after, Aphria merged with Tilray announcing it would be “well-positioned to pursue an accelerated rate of growth in the Canadian and the U.S. beverage industries by leveraging SweetWater’s innovation, knowledge, and expertise to introduce adult-use cannabis brands via craft beers and other beverages.”

Just last month SweetWater and another Tilray company, RIFF Cannabis, launched a line of ready-to-drink (RTD) vodka sodas called SweetWater Riff. The beverages do not contain THC but the acquisition of recognized US companies like SweetWater and Breckenridge certainly allows for future cannabis-infused opportunities as US legalization becomes a reality.

Tilray isn’t the only company looking forward to future opportunities with Breckenridge. Bryan Nolt, the Founder and CEO of Breckenridge Distillery, insisted, “We are excited to join Tilray and drive revenue growth as part of its global and leading CPG and cannabis-lifestyle platform. The award-winning spirits that have driven our success will unquestionably benefit from access to Tilray’s global distribution network and opportunities to expand into cannabis and edible-related products in the U.S.”

Shirani Jayasuriya
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