The CEO of cannabis multistate operator Green Thumb Industries is pitching a merger between his company and Boston Beer Co., the manufacturer of the Samuel Adams family of brews. Green Thumb CEO Ben Kovler proposed the merger idea in a letter dated June 2 to Boston Beer chairman and founder Jim Koch, saying the move would benefit both companies. On June 4 Kovler shared the letter on the social media platform X, saying in his post that Green Thumb is a “better buyer” for the company compared to other proposals.
Boston Beer Co. has a market capitalization of about $3.6 billion, while Green Thumb is worth about $2.8 billion. Kovler wrote in his letter to Koch, who has 100% of the voting rights of the company’s Class B stock, that the two companies were a good fit, noting that the cannabis industry continues to grow as more states legalize weed. Alcohol consumption is declining, however, with young adults drinking less than previous generations.
“As we look at a future where this consumer trend continues to gain traction, I believe we have to be proactive versus reactive,” Kovler wrote in the letter.
Kovler published his letter on social media after the Wall Street Journal reported on June 4 that Japanese whisky maker Suntory Holdings was in early negotiations to buy Boston Beer, saying that a deal with Green Thumb Industries would be able to make a “superior and more valuable offer” for the brewing company.
After the Wall Street Journal report, Boston Beer said that is “fully focused” on running the brewing operation as an independent company. Suntory also disputed the reports that it was at the bargaining table with the American brewer.
“There is no fact that we are in any negotiations with Boston Beer,” Suntory said in a statement, according to a report from …
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Author: A.J. Herrington / High Times
