As part of a restructuring effort, Tilray Brands is reducing its U.S. brewing operations from 10 to six facilities, aiming to achieve $20 million in yearly cost savings by fiscal 2028’s end.
The company is pursuing efficiencies across manufacturing, warehousing, procurement, and logistics. The goal is to simplify operations, improve brewery utilization, and strengthen margins.
The latest restructuring efforts, which began in January 2025, have led to several key changes. These include the closure of certain breweries, a more streamlined distributor network, and a reduced product portfolio for the company’s beverages.
Since January 2025, Tilray has cut its US distributor network by approximately 9%. It has also reduced its beverage stock-keeping unit (SKU) count by about 28%. This removed duplicative, lower-margin, and slower-moving products. The company is now focusing on established regional brands and national offerings, including non-alcoholic beverages and functional energy drinks.
Several breweries have recently been closed, including those operated by Hop Valley in Eugene, Redhook Brewlab, and Revolver. Additionally, the Atwater brand was sold, while Terrapin Brewing relocated from Athens to a different facility, with some operations like the taproom and warehousing remaining in place.
Tilray is also evaluating the sale or monetization of surplus brewing and warehouse facilities made redundant by the restructuring.
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A significant partnership is set to begin on January 1, 2027, between Tilray and Carlsberg, where Tilray will produce and distribute Carlsberg brands in the US, such as Carlsberg, Carlsberg Elephant, 1664, and 1664 Blanc, with a target of one million cases in the first year.
Tilray’s global beverage platform represents approximately $500 million in pro forma annual revenue.
Tilray reaffirmed fiscal 2027 adjusted EBITDA guidance of $68 million to $75 million. This includes anticipated cost-reduction benefits.
Irwin D Simon, chairman and CEO of Tilray Brands, stated, “We have taken meaningful steps to simplify our US beverage operations, reducing our brewing footprint while optimising our brand portfolio.” He also indicated that further consolidation of distributors would be a priority going forward.
Simon added, “With a more efficient cost structure and additional volume opportunities ahead, we expect these actions to drive margin expansion and stronger earnings across our US beverage operations.” He noted the plan will create flexibility to reinvest in brands and deliver sustainable long-term shareholder value.
