Tilray Brands closes four breweries in 20 million dollar cost-cutting effort
Global beverage producer Tilray Brands is consolidating its U.S. operations by cutting product lines and shuttering brewing facilities to prioritize non-alcoholic and energy drink segments.
Tilray Brands is restructuring its U.S. beverage business to reduce costs by 20 million dollars by the end of the 2028 fiscal year. The company has moved to close four of its ten breweries and reduce its product lineup by 28 percent as part of an effort to streamline operations and focus on higher-growth categories, including energy drinks and non-alcoholic beverages.
The shuttered sites include Hop Valley in Oregon, Redhook BrewLab in Seattle, and Revolver in Texas. Furthermore, the company has relocated brewing operations from its Terrapin facility in Georgia to other sites, though it maintains taproom and distribution capabilities at that location. CEO Irwin D. Simon stated that the moves are necessary to simplify the firm's footprint and optimize its brand portfolio.
The restructuring precedes a major licensing partnership with Denmark’s Carlsberg Group, set to begin on January 1, 2027. Under this agreement, Tilray will manage the production and nationwide distribution of several Carlsberg brands. The company estimates this partnership will boost its annual production volume by approximately one million cases within the first year.