A patio season staple has fallen on hard times in recent years, but one Canadian company is putting its money on a rebound.
Driving the news: As beer behemoths like Molson Coors, Constellation Brands, and AB InBev continue to offload their craft beer brands, Canadian cannabis and beverage company Tilray Brands is scooping them up — in a bet that hoppy pilsners and hazy IPAs can make a comeback.
- This month, Tilray bought Molson Coors’s whole craft beer portfolio and scooped up eight of AB InBev’s craft breweries and beverage brands last year, including Shock Top, for US$85 million.
Why it matters: Craft beer has become hurt by a shift in consumer tastes towards lighter, healthier drinks with less or no alcohol — prompting brands like Molson to punt on those heavy 8% IPAs and focus their efforts on emerging categories, like seltzers and cocktails.
- Meanwhile, companies like Tilray and Athletic Brewing are also launching nonalcoholic, healthier twists on craft beer classics to cater to evolving palates.
Zoom out: Ottawa may have decided to freeze its “beer tax” this year, but rising costs and lower demand have pushed many smaller craft brewers in Canada out of the picture.—LA