Breckenridge Distillery in Breckenridge, Colorado is the world’s highest distillery at an altitude of 9,600 feet. The distillery was founded in 2008 by Bryan Nolt, a doctor-turned-distiller, with an overwhelming obsession for whiskey. The distillery features a wide selection of bourbons, whiskeys, rums, vodkas, aquavit, brandy, and gin as well as a full-service restaurant and bar.
Breckenridge Distillery Acquired for $109.2 Million
The Breckenridge Distillery has been acquired by Tilray, a Canadian owned and operated global cannabis-lifestyle and consumer packaged goods company. Tilray is placing a bet that with this strategic investment with an eye toward the eventual federal legalization in the U.S. of THC-based products.
Chairman and CEO of Tilray Irwin D. Simon said, “Tilray’s strength lies in our ability to identify and significantly expand leading CPG lifestyle brands that resonate powerfully with consumers. 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. We see tremendous potential for Breckenridge and our existing SweetWater Brewing brand to complement each other, expanding their respective reach and driving further profitable growth in our beverage alcohol segment.
“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. 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.”
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“We are excited to join Tilray and drive revenue growth as part of its global and leading CPG and cannabis-lifestyle platform,” said Breckenridge Distillery’s Founder and Chief Executive Officer Bryan Nolt. “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.”
Breckenridge Distillery CEO and Founder Bryan Nolt.
Breckenridge Distillery is most widely known for its blended bourbon whiskey, a high-rye mash American-style whiskey, and a collection of artisanal spirits offering that brings to life the best that Colorado has to offer. Breckenridge Distillery’s consumer engagement strategy is defined and differentiated through unique experiential marketing and highly-effective social media outreach and includes a lucrative and exclusive partnership as the hometown Bourbon of the Denver Broncos.
Under the terms of the acquisition, the sellers of Breckenridge were led by Sababa Partners I LLC, an entity controlled by Sir Martin E. Franklin. In addition to acquiring a strong brand and accretive business, this strategic acquisition delivers additional scale in the beverage alcohol categories and further positions Tilray with infrastructure and a larger footprint in the U.S. market upon federal cannabis legalization.
Breckenridge Distillery Joins Sweetwater to Further Diversify and Grow Tilray’s Beverage Alcohol Business
Breckenridge Distillery’s Vendome Copper & Brass Works 42 foot tall copper column still.
Breckenridge Distillery joins SweetWater Brewing Company as the cornerstones of Tilray’s beverage alcohol segment and further diversifies the company’s net revenue mix. Breckenridge Distillery is expected to be immediately margin accretive with Breckenridge generating adjusted EBITDA margins of approximately 25 percent.
When federally permissible, Tilray believes the acquisition of Breckenridge Distillery will enable Tilray to commercialize new and innovative products through the development of non-alcoholic distilled spirits, including bourbon whisky, that is infused with cannabis.
Opportunity to Grow Breckenridge’s 85% Revenue Beyond It’s Home State of Colorado
With more than 85% of its revenue generated in Colorado, Breckenridge Distillery has enormous potential to expand its customer base and grow throughout the U.S. as a true national brand. To that end, Tilray intends to leverage SweetWater’s existing nationwide infrastructure to accelerate Breckenridge Distillery’s and create new, greatly-expanded consumer awareness and product adoption.
How Much Did Tilray Pay for Breckenridge Distillery?
According to an SEC filing, “As consideration for the Acquisition, [Tilray] paid a purchase price in an aggregate amount equal to $102.9 million, which purchase price was satisfied through the issuance of 11,245,511 of Tilray’s Class 2 common shares to the selling unit holders of DDD (the “Consideration Shares”).
Learn more about Breckenridge Distillery.
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