Atlanta-based SweetWater Brewing Company has partnered with Reyes Beer Division to expand distribution across California.
The move continues the brewery’s westward expansion since the company’s acquisition by the global cannabis firm, Tilray.
“Having been born and raised on the West Coast, 25 years ago I had the fantastic opportunity to bring a piece of home with me to the East Coast through a slew of SweetWater’s West Coast-style beers over the years,” Freddy Bensch, SweetWater co-founder and CEO, said in a press release. “I am beyond stoked to have found our way across the U.S. to California, our OG stomping grounds, where we will continue to leverage the 420 lifestyle and SweetWater brand in its truest and purest form.”
In 2021, Tilray expanded SweetWater’s distribution to Colorado, opened a taproom at Denver International Airport, and acquired the former Red Truck brewery in Fort Collins, Colorado, which is now used as a SweetWater production facility, as well as for the Green Flash and Alpine brands, which Tilray acquired for $5.1 million in cash and stock in December 2021.
Green Flash and Alpine are listed in the product catalogs of Crest Beverage and Golden Brands, Reyes subsidiaries in the San Diego and Bay Area markets, respectively, but are absent from the catalogs of the other Reyes operations in the state.
Through Q2 2022, SweetWater has expanded into 47,000 points of distribution in on- and off-premise channels across 28 states, the company reported.
SweetWater brought in $13.7 million in net revenue during Q2 2022 (through November 30, 2021), Tilray CEO Irwin D. Simon said during the company’s earnings call last month. It is now the 11th largest craft brewery in the U.S., according to the release, citing the Brewers Association (BA)
In Tilray’s 2021 fiscal year (through May 31), SweetWater generated $15.9 million in net beverage revenue, which lagged behind the brewery’s pre-COVID-19 sales, the company reported in August. In 2020, the brewery reported 226,639 barrels sold, a 13% decline compared to 2019 (260,420 barrels), according to the BA.
Tilray merged with Aphria (which acquired SweetWater in November 2020) in May 2021, creating the world’s largest cannabis company. In December, Tilray acquired Breckenridge, Colorado-based craft spirits-maker Breckenridge Distillery.
In Q2 2022, Tilray’s net revenue increased 20% to $155 million, led by cannabis sales, which brought in $58.8 million in the quarter.