Tilray Brands Plans Consolidation of Its US Breweries

The Canadian cannabis and beverage producer Tilray Brands is considering the possibility of consolidating its breweries in the United States. Through various acquisitions, including the purchase of four breweries from Molson Coors in August and several beer brands from Anheuser-Busch InBev last year, Tilray has established a significant presence in the U.S. beer market. CEO Irwin Simon informed analysts following the release of the first quarter results of the fiscal year that the company might need to consolidate some of its facilities. Additionally, there are plans to reduce the number of beer varieties offered to decrease complexity and streamline the brand structure. Despite a doubling of beverage segment revenue to USD 56 million, the adjusted gross margin fell from 56% in the previous year to 41%. Simon indicated that they want to focus on three to five states to strategically invest in their craft beer brands and strengthen collaborations with distributors and consumer education. In the first quarter, Tilray achieved a 13% increase in revenue to USD 200 million, with net losses improving by 38% to USD 34.7 million. For the entire fiscal year, Tilray reached a revenue of USD 788.9 million, representing a 26% increase. Net losses improved significantly to USD 222 million. Last month, Tilray cut some positions in its beverage division to optimize areas with redundancies.