US cannabis giant Green Thumb Industries (GTI) has confirmed its interest in a potential merger with alcohol brand Boston Beer.
Earlier this week, a report from the Wall Street Journal suggested that the Chicago-based cannabis company’s CEO, Ben Kovler, had sent a letter to Jim Koch, founder of Boston Beer, outlining a proposal for a potential merger.
The report sent the rumour mill into overdrive, as numerous other media outlets reported that they had also seen the letter.
On Wednesday (June 05), Kovler took to X to address the rumours, confirming that he had sent the letter and posting it publicly for the first time, despite an official statement from the company stating its policy was not to comment on ‘media speculation’.
In it, he suggested a tie-up would allow GTI to become one of the few cannabis companies on a major stock exchange, while enabling the brewer to expand into multiple categories like prerolls, edibles, drinks and vapes.
He suggested the tie-up would create a ‘powerhouse of brands’ able to address the growing cohort of young consumers turning away from alcohol.
Boston Beer, which produces Samuel Adams larger among a host of other brands, already has a foothold in the cannabis market through its THC-infused TeaPot brand.
The brewer, which currently has a market capitalization of around $3.6bn, has remained quiet in regards to the proposal, stating only that it is ‘fully focused’ on its business as an independent company, of which Koch is understood to have 100% of the voting rights.
It would not be the first time the two industries have merged, with Tilray recently closing its acquisition of 8 craft beer brands and Contellation Brands investing $4bn into Canopy Growth.
