Tilray continues closing breweries

Breweries seemed to be the answer to balance its cannabis business, but Tilray Inc. (NASDAQ: TLRY) is continuing to shutter businesses it recently bought.

The latest is Hop Valley Brewing in Eugene, Oregon. The company announced the move internally a couple of days ago and confirmed to the outlet BrewBound that the production facility would close in July. Tilray had just bought the company in September of 2024 from Coors (NYSE: TAP) for an undisclosed amount. At the time, CEO Irwin Simon said, “Our plan is to drive growth and maximize the potential of these brands to their fullest capacity, while maintaining our dedication to delivering high-quality products and meeting the evolving needs of our consumers.”

The company also stated when it made the acquisition that it further strengthened Tilray’s leadership position in the U.S. craft beer market as the 5th largest craft brewer in the country and the top craft brewer in the Pacific Northwest and Georgia.

Now, it seems Tilray is firing the entire operations team at the intensely local brewery. Some of the marketing staff and administrative staff were supposedly terminated immediately. It looks as if all other Hop Valley brands will be produced at either 10 Barrel (Bend) or Widmer Brothers (Portland) before the end of summer.

Revolver closes

This closure follows a similar situation in Texas when the company closed the original Revolver Brewing Granbury facility in February 2025. Known for its Blood & Honey Texas Ale, several Texas publications reported that Tilray ceased producing Revolver Brewing beer at that location but that the brewhouse and taproom remain open.

While the company didn’t make the announcement, a brewer and scientist at Revolver, P.J. Milly,  posted on LinkedIn that his team had “concluded all major operations” at the brewery. The Revolver beers are now being brewed at Breckenridge Brewery and Terrapin Beer Co.

Revolver was a homegrown craft brewer that was acquired by Coors as well and was part of the same acquisition push as Hop Valley.

Sweetwater stalls

Tilray also found itself in the brewery business when it merged with Aphria in 2021, which had purchased SweetWater Brewing in 2020 in a deal valued at $300 million. Then, Tilray went on an acquisition bender and acquired numerous craft brands as the trend was showing signs of slowing.

In 2023, Tilray acquired eight beer and beverage brands from Anheuser-Busch, including Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery and Widmer Brothers Brewing. The company said at the time that it expected the deal to deliver $250 million in revenue.

However, the company closed the Fort Collins SweetWater production brewery in the summer of 2024 after rebranding the restaurant as a Breckenridge pub.

Part of the plan

Tilray said in its recent financial filing that these changes are all part of its plan to strategically adjust its portfolio mix and distribution geography through its distributor consolidation program. It described the strategy as its “portfolio rationalization initiatives.”

The filing stated, “In response to the declining growth in the craft beer industry and consolidation of distributors, we are working with our distributors in various markets to streamline our portfolio by eliminating duplicative and slower growth products, which had the immediate effect of reducing revenue.”

For the nine months ending February 28, 2025, Tilray said its SKU and geographic rationalization resulted in a reduction in net sales of approximately $14.0 million. “For the fiscal year ending May 31, 2025, it is anticipated that the cumulative impact of these initiatives will result in a reduction of approximately $20.0 million in net sales, which we believe will be offset by the growth of our new product innovation, including in new beverage categories, and brand extensions over the next 12 months,” stated the filing.

The company went on to say that it has been and is continuing to increase its investment in the marketing, promotion and infrastructure of its recently acquired brands to reestablish their dominance in their core markets.

That may be easier said than done, as the company continues to anger locals by buying breweries and then laying off long-time employees.

One Reddit author, Guilty-Hyena-2552, wrote, “Tilray is so behind on paying bills to various vendors & suppliers for the breweries that a lot of them either won’t do business with the breweries anymore or are currently putting them on accounting hold.”

Tilray has not responded yet for a request to comment.