Green Thumb & Boston Beer: Market Rumors and Benefits
The TDR Three Key Takeaways regarding Green Thumb and Boston Beer:
- Green Thumb’s CEO, Ben Kovler, has reportedly been eyeing a merger with Boston Beer.
- Professor Jonathan Caulkins noted, “In 2022, past-month cannabis consumers were almost four times as likely to report daily or near-daily use (42.3% vs. 10.9%) [than alcohol drinkers] and 7.4 times more likely to report daily use (28.2% vs. 3.8%).”
- Green Thumb’s policy is not to comment on market rumors, Press Release states
Green Thumb Industries Inc. (CSE: GTII, OTCQX: GTBIF), a national cannabis consumer packaged goods company and owner of RISE Dispensaries, is at the center of market rumors regarding a potential merger with Boston Beer Company (NYSE: SAM). Green Thumb’s CEO addressed these rumors after the Wall Street Journal article on June 4th.
Green Thumb’s CEO, Ben Kovler, has reportedly been eyeing a merger with Boston Beer. This could potentially reshape both companies, especially considering the nature of the cannabis market. In a letter to Boston Beer CEO Dave Burwick, Kovler emphasized the mutual benefits of such a merger, highlighting the growing consumer trends towards cannabis. “As we look at a future where this consumer trend continues to gain traction, I believe we have to be proactive versus reactive,” Kovler reportedly wrote in the June 2 letter to Burwick, according to the WSJ article.
The cannabis market has seen a shift in consumer behavior. A report by Carnegie Mellon Professor Jonathan Caulkins noted, “In 2022, past-month cannabis consumers were almost four times as likely to report daily or near-daily use (42.3% vs. 10.9%) [than alcohol drinkers] and 7.4 times more likely to report daily use (28.2% vs. 3.8%).” These statistics underscore the changing market and the increasing cannabis use compared to traditional alcohol consumption.
However, Green Thumb has been cautious in addressing these market rumors directly. Following the publication of a Wall Street Journal article, the company issued a statement: “The company’s policy is not to comment on market rumors.” This stance reflects a cautious approach to the speculative nature of such market movements and maintains focus on Green Thumb’s strategic goals.
“Kovler outlined the potential benefits of a combination, including allowing Green Thumb—currently listed in Canada and over-the-counter in the U.S.—to be listed on a major U.S. exchange,” M&A reporter Lauren Thomas wrote. This listing on a major U.S. exchange could enhance Green Thumb’s market visibility and investor base, providing a solid platform for future growth.
Market rumors about a potential merger between Green Thumb and Boston Beer have stirred interest, but both companies remain ambiguous. Investors should monitor official communications for updates as consumer trends evolve and strategic mergers become more common. Want to be updated on all things Psychedelic, Cannabis, AI, and Crypto? Subscribe to our Daily Baked in Newsletter!
