Tilray Just Made a Big Beer Move -- Here's What Investors Need to Know
When Tilray Brands (NASDAQ: TLRY) announced on Aug. 7 that it was buying eight of Anheuser-Busch InBev's (NYSE: BUD) beer brands, the market was positively exuberant. Tilray's share prices jumped by around 20% in a day. Investors are now reassessing the true scope of the company's ambitions in the U.S. alcoholic beverage market.
But how does this latest move change Tilray's long-term potential as an investment? Let's look at the details.
Though it was originally a cannabis business, Tilray had a craft beer lineup before the deal that was starting to look impressive. Its six brands were gaining traction, with the beer segment's revenue growing 43% year over year to reach more than $32 million in its fiscal fourth quarter (ended May 31). It also posted slightly stronger gross margins.
Source Fool.com
