Cannabis giant Tilray buys Montauk Brewing Co.

Montauk Brewing Co., local maker of beers such as Wave Chaser IPA, Montauk Summer Ale and Cold Day IPA, has been acquired by corporate cannabis giant Tilray Brands.  

Tilray, a New York City-based cannabis researcher and cultivator with operations in the United States, Canada, Europe and Latin America, distributes cannabis consumer products, hemp-based foods, and craft beverages through 20 brands in more than 20 countries.  

The purchase price was not disclosed.

“It’s a really interesting strategic partnership because it’s not your typical Anheuser-Busch purchase sort of thing,” said Vaughan Cutillo, co-founder of Montauk Brewing. “We’re excited.”

Montauk Brewing, recognizable for its white and pastel-colored beer cans, joins Tilray’s growing group of alcoholic beverage makers, including SweetWater Brewing Co., the Alpine and Green Flash iconic Southern California brands, and Breckenridge Distillery, the pot giant’s bourbon and spirits brand.

Tilray said it will leverage SweetWater’s national distribution network – the brand distributes in more than 40 states – to expand Montauk’s reach.

“Montauk Brewing is an iconic brand with leading market share and distribution in the Northeast,” Irwin D. Simon, chief executive of Tilray, said in a statement announcing the purchase.

Tilray, which is traded on the NASDAQ, reported revenue of $628.4 million during the fiscal year that ended May 31.

“Tilray Brands continues to strengthen our U.S. footprint and operations through investments in and growing our portfolio of leading lifestyle brands that resonate powerfully with consumers,” Simon said.

Simon is no stranger to overseeing Long Island businesses.

He founded Lake Success-based Hain Celestial, an organic and natural foods company, in 1993 and served as the company’s CEO, president and chairman before stepping down as chief executive in 2018.

He went on to serve as chairman and CEO of Aphria Inc., an Ontario-based cannabis company that merged with Tilray last year.

Montauk Brewing, founded in 2012 by Cutillo and longtime friends Eric Moss and Joe Sullivan,  rose from modest beginnings, Cutillo said. Sullivan has since left the brewer.

“We started homebrewing in my basement about a mile up the street from where the brewery is today,” he said. 

Montauk Brewing’s beer is distributed throughout the Northeast and can be found in the metro area at bars and retailers such as Target, Whole Foods, Trader Joe’s, Stop & Shop, King Kullen, Walmart, 7-Eleven, Costco, BJ’s and Speedway.

The brewer produces about 50,000 barrels of beer annually and has 10 employees, Cutillo said. 

“It’s been an incredible ride and an incredible journey,” Cutillo said. “With the new partner, we are looking at new markets.”

Cutillo, Moss and brewery general manager Terry Hopper will continue to oversee operations and develop products out of their flagship headquarters and tasting room at 62 S. Erie Ave.

Cutillo said it's too early to say what kinds of products will come out of the partnership, but said the brewery's signature products will continue to be his focus.

“Tilray, they’re the experts on the cannabis side, and we’re going to let them teach us about that,” he said. “We’re 100% focused on brewing beer.”