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Tilray Brands has completed the consolidation of its US brewing network from 10 facilities to six as part of a wider transformation programme targeting approximately $20 million in annualised cost savings by the end of fiscal 2028.
The global consumer packaged goods company said it is pursuing further efficiencies across manufacturing, warehousing, procurement and logistics to reduce operational complexity, improve brewery utilisation and strengthen margins.
The latest measures build on restructuring initiatives launched in January 2025, which have included brewery closures, distributor network consolidation and a reduction in the company's beverage product portfolio.
Tilray has reduced its US distributor network by approximately 9% since January 2025, with further consolidation ongoing. The company expects to substantially complete this process by the end of fiscal 2028.
It has also reduced its beverage SKU count by approximately 28%, removing duplicative, lower-margin and slower-moving products to focus investment on established regional brands, selected national offerings and higher-potential categories, including non-alcoholic beverages and functional energy drinks.
As part of its brewery optimisation programme, Tilray has closed Hop Valley's Eugene brewery, Redhook Brewlab and Revolver brewery, as well as sold the Atwater brand. It has also transferred Terrapin's brewing production from Athens to other Tilray facilities while retaining the site's taproom, warehousing and repackaging operations.
The company is now considering the sale and monetisation of surplus brewing and warehouse facilities made redundant through the restructuring.
The operational changes come ahead of Tilray's exclusive US brewing and commercial partnership with Carlsberg, which is scheduled to launch on 1 January 2027.
Under the agreement, Tilray will use its existing brewing infrastructure, sales organisation and distribution network to produce and commercialise Carlsberg's portfolio in the US, including Carlsberg, Carlsberg Elephant, 1664 and 1664 Blanc.
The partnership is targeting approximately one million cases in its first year, providing additional production volumes and opportunities to improve capacity utilisation across Tilray's remaining breweries.
Tilray expects to accommodate the additional volumes without a proportionate increase in fixed operating costs, potentially improving operating leverage and profitability.
The company said its global beverage platform represents approximately $500m in pro forma annual revenue, combining consumer brands, brewing infrastructure, hospitality operations and distribution capabilities.
Tilray is targeting approximately $20 million in annualised cost savings by the end of fiscal 2028, with the majority of incremental benefits from the latest initiatives expected to materialise by that point.
The company has reaffirmed its fiscal 2027 adjusted EBITDA guidance of $68m-$75m, which already incorporates the anticipated benefits of cost-reduction measures currently underway.
Commenting on the transformation, Irwin D Simon, chairman and CEO of Tilray Brands, said: "We have taken meaningful steps to simplify our US beverage operations, reducing our brewing footprint while optimising our brand portfolio."
He added that the next priority is to reduce operational complexity through further consolidation of the distributor network, improving margins and profit generation.
"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, while creating greater flexibility to reinvest in our brands, accelerate growth and deliver sustainable long-term shareholder value," Simon said.
