The cannabis industry in the US is on the cusp of a major breakout. This has been emphasized by the results of the recent elections, which found all states with cannabis measures on their ballots approving expanded efforts.
As the breakout moves forward, Aphria is set to take full advantage of the growth and has announced a major acquisition that will propel it deeper into the market. The cannabis company is close to completing the purchase of SW Brewing Company, also known as SweetWater, one of the largest craft breweries in the country.
SweetWater has 420 products that it distributes across the US in 27 states and DC. Headquartered in Atlanta, GA, it offers both seasonal and year-round brews that are sold in approximately 29,000 retail stores, including national chains and independent stores. The company also has on-premises operations available at over 10,000 restaurants and bars.
Aphria is prepared to spend $300 million to acquire the company, which has been unanimously approved by its Board of Directors. The company is ready to utilize SweetWater to help it increase awareness of its adult-use cannabis brands in the US, bringing the Broken Coast, Good Supply, Riff and Solei names to cannabis consumers across the country. The arrangement will also give Aphria access to new partnerships with distributors and retailers that will help it further its US progress.
Irwin D. Simon, Aphria’s Chairman and CEO, asserts, “Our strong balance sheet and access to capital have enabled us to enter the U.S. through this strategic and accretive acquisition. We will establish and grow our U.S. presence through SweetWater’s robust, profitable platform of craft brewing innovation, manufacturing, marketing and distribution expertise. At the same time, we will build brand awareness for our adult-use cannabis brands, Broken Coast, Good Supply, Riff and Solei, through our participation in the growing $29 billion craft brew market in the U.S. ahead of potential future state or federal cannabis legalization. We look forward to building upon the strengths of each of our respective and complementary brands, diversifying our product offering, broadening our consumer reach, and enhancing loyalty with consumers.”