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Dive briefing:
- Tilray Brands announced the launch of Runner's High Brewing Company, a non-alcoholic beer brand aimed at active consumers looking for a healthier alternative to beer. It will launch first in Atlanta with plans to expand to more markets later this year.
- According to a press release, the beer will be available in three varieties: Golden Wheat, which has a citrusy aroma; Raspberry Wheat, which tastes like raspberry jam; and Dark Chocolate, which is reminiscent of moist chocolate cake. Each can contains between 60 and 90 calories.
- Runner's High allows for: Tilray It’s about growing its presence beyond its cannabis roots. Last August, Tilray Purchased eight beer and liquor brands from Anheuser-Busch for an undisclosed amount.
Dive Insights:
Cannabis companies facing federal restrictions on selling their products across states have seen their growth potential hampered by the complex legal landscape for selling the plant in the United States. As a result, some are looking for new revenue streams in categories outside their traditional wheelhouse. Namely beer.
The non-alcoholic beer is themed around runners, and the company says it aims to be the beverage of choice for people who enjoy exercise as a sport or hobby. According to a press release, Runner's High aims to “elevate, motivate and celebrate the unique lifestyle of the social running community.”
Tilray is positioning beer as an alternative to alcohol for consumers who don't want to deal with the negative health and wellness effects associated with drinking.
The non-alcoholic beer category, previously seen as a lesser alternative to traditional alcoholic beers, is now seen as a viable alternative for consumers looking to drink less alcohol. According to Athletic Brewing, this category will grow 35% in 2023, with a 19% market share. This month, Athletic announced the acquisition of a second manufacturing facility in San Diego to meet its brewing needs.
Runner's High expands Tilray's beverage business with its own brands, having been acquiring breweries for the past two years. Tilray's beer brands acquired from Anheuser-Busch include craft beers Shock Top, Redhook Brewery and Square Mile Cider Company. In 2022, Tilray acquired beer producer Montauk Brewing.
Major brewers are experimenting with non-alcoholic beers as the category gains popularity. Sam Adams’ Boston Beer introduced General Admission, a beer-and-seltzers flavor combination, in select stores and online earlier this year.
