noting that the prohibition of alcohol in the 1920s led to the rise of organized crime and bootlegging, while the legalization of alcohol in the 1930s brought about regulation and taxation
The CEO of Green Thumb Industries Wants to Merge with Boston Beer Co.
Attention all beer and cannabis enthusiasts! The CEO of Green Thumb Industries, Ben Kovler, has proposed a merger between his company and the beloved Boston Beer Co., makers of the iconic Samuel Adams brews. Kovler shared his bold idea in a letter to Boston Beer’s chairman and founder, Jim Koch, dated June 2.
Kovler believes that a merger between the two companies would be mutually beneficial, as the cannabis industry continues to grow with the legalization of weed in more states. In contrast, alcohol consumption is on the decline, especially among young adults. Kovler argues that this trend should be met with proactive measures, rather than reactive ones.
On June 4, Kovler took to the hip social media platform X to share his letter and declare that Green Thumb is the “better buyer” for Boston Beer compared to other proposals. With a market capitalization of $3.6 billion, Boston Beer Co. is worth more than Green Thumb’s $2.8 billion, but Kovler is confident that the two companies are a perfect match.
However, Kovler’s proposal comes at a time when the Wall Street Journal reported that Japanese whisky maker Suntory Holdings is in talks to buy Boston Beer. Kovler believes that a merger with Green Thumb would result in a “superior and more valuable offer” for the brewing company.
But Boston Beer has made it clear that they are “fully focused” on running their brewing operation as an independent company. Suntory also denied any negotiations with the American brewer, stating that there is “no fact” to these reports.
In his letter to Koch, Kovler highlights the potential for both companies to launch new products through the merger, including pre-rolls, beverages, edibles, vapes, concentrates, and topicals. Stock market analyst Aaron Grey, CEO of Alliance Global Partners, believes that this merger would allow Boston Beer to enter new markets as alcohol sales continue to decline.
Grey also notes that a merger with Green Thumb would give the cannabis company a listing on the New York Stock Exchange, opening up their shares to a wider base of shareholders. Currently, Green Thumb’s stock is only listed on the Canadian Securities Exchange and can be acquired through over-the-counter transactions.
Kovler draws parallels between the cannabis industry and the alcohol industry, citing the prohibition of alcohol in the 1920s and the rise of organized crime and bootlegging. He believes that the legalization of alcohol in the 1930s brought about regulation and taxation, and the same could happen for cannabis.
