Cannabis Company Green Thumb Floats Boston Beer Tie-Up
June 5, 2024Chicago-based cannabis company Green Thumb Industries (GTI) is interested in a potential merger with the Boston Beer Company (BBC), according to a letter from GTI chief executive Ben Kovler to BBC chairman and founder Jim Koch. The letter, confirmed by the Wall Street Journal, outlined the potential upsides to a merger for both companies.
For GTI, a merger could offer access to a major U.S. stock exchange—currently GTI is listed on the Over-the-Counter Marketplace plus the Canadian Securities Exchange—and, for Boston Beer, a tie-up would allow the company to cast a broader net and widen their appeal beyond beverage alcohol. In the letter, Kovler notes that younger consumers are drinking less and that cannabis is still on the upswing (Boston Beer is already part of the cannabis industry through its TeaPot line of beverages, marketed in Canada).
The letter boosted GTI’s stock price, with the company’s share price reaching $11.99 following the confirmation. Boston Beer’s share price declined following the reporting on the letter. Kovler’s letter comes a week after rumors leaked that Suntory Global Spirits could make a play for Boston Beer Company, although Suntory subsequently denied it was looking to buy the brewer.
If a deal comes to fruition, it wouldn’t be the first company with substantial assets in both cannabis and beverage alcohol. Tilray, which is a leader in Canada’s cannabis market, has built a U.S. presence in alcohol with brands like Sweetwater Brewing, Montauk Brewing, Breckenridge Distillery, and Shocktop, with the company reporting significant growth Q3 growth and attributing those gains to the success of its alcohol portfolio. Tilray chairman Irwin Simon will be among the featured speakers at the 48th Annual Impact Marketing Seminar in New York this fall.—Shane English
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