Tilray Brands has reached a definitive agreement to sell Atwater Brewery back to its original founder and entrepreneur Mark Rieth. The deal, expected to close this summer, marks a significant reversal for the Canadian beverage group, which had acquired the Detroit-based brewer in 2023 as part of its expansive US craft beer strategy.
Mark Rieth, who owned the brewery from 2005 until 2020, will regain control of the brand, its production equipment, and intellectual property. He had originally sold the company to Tenth and Blake Beer Company, the craft division of Molson Coors (inside.beer, 22.1.2020), before it was subsequently swept into the Tilray portfolio (inside.beer, 13.8.2024). Throughout the corporate transitions of the past five years, Mark Rieth notably retained ownership of the historic brewery real estate in Detroit's Rivertown district, which he continued to lease to the successive owners.
The divestment follows a period of rapid acquisition for Tilray, which has been building a diverse international beverage portfolio to offset the regulatory volatility of its core cannabis business. However, industry analysts suggest that the decision to sell the brand back to its founder reflects a strategic shift toward prioritizing higher-performing assets within a challenging craft beer market. This transaction occurs simultaneously with Tilray’s recent efforts to leverage its newly acquired BrewDog assets to push other US craft brands into the UK market.
For Mark Rieth, who also owns Lansing Brewing Co. and recently acquired the historic Velvet Peanut Butter brand, the move is being framed as a homecoming. He plans to integrate the operations of his various businesses at the Rivertown complex and launch a retail experience known as Velvet House. While the financial terms of the deal remain undisclosed, the move allows the entrepreneur to reconnect the brewery with the local community, a connection he emphasized as a primary motivation for the reacquisition.
