Tilray Is Closing 4 Breweries to Save $20 Million. Its Subsequent Progress Wager Is not Craft Beer
The global beverage and cannabis producer is changing its strategy in an attempt to revive its business.
Tilray Brands, a global beverage and cannabis producer, is restructuring its U.S. beverage business in a bid to save $20 million by the end of fiscal 2028. The New York-based company is closing breweries, cutting products, and consolidating operations as it shifts its focus toward faster-growing categories such as nonalcoholic beverages and energy drinks.
Tilray, whose best-known craft beer brands include Shock Top wheat ale and Blue Point toasted lager, said it has shut down four of its 10 brewing facilities. It has also cut its distributor network by about 9 percent, and trimmed roughly 28 percent of the products in its beverage lineup.
We have taken meaningful steps to simplify our
“We have taken meaningful steps to simplify our U.S. beverage operations, reducing our brewing footprint while optimizing our brand portfolio,” Irwin D. Simon, chairman and chief executive officer, said in a statement.
Tilray has closed three breweries: Hop Valley in Eugene, Oregon; Redhook BrewLab in Seattle; and Revolver in Granbury, Texas. The company also transferred brewing operations from Terrapin’s facility in Athens, Georgia, to other Tilray breweries while retaining the site’s taproom, warehousing, and repackaging operations.
Refreshed leadership advice from CEO Stephanie Mehta
Tilray also sold the Atwater Brewery brand to former owner Mark Rieth in June. Terms of the deal were not disclosed.
The overhaul comes as Tilray prepares to launch
The overhaul comes as Tilray prepares to launch an exclusive U.S. production and distribution partnership with Denmark’s Carlsberg Group on January 1, 2027.
Under the licensing deal, Tilray will brew and market several Carlsberg brands nationwide, including its flagship pilsner, Carlsberg Elephant pale bock lager, and 1664 Blanc wheat beer. The company said the partnership is expected to add roughly 1 million cases to its production volume in its first year.
Source: www.inc.com
