Tilray Inc.’s (NASDAQ: TLRY), which recently acquired Breweries, is still closing down the businesses they bought.
Hop Valley Brewing of Eugene in Oregon has been the most recent. The move was made internally two days ago. BrewBound, a media outlet that covers the industry, confirmed the closure of the brewery in July. Tilray purchased the Coors company (NYSE TAP) in 2024, for an unspecified amount. Irwin Simon, the CEO at the time said: “Our goal is to maximize these brands’ potential and drive growth, all while remaining committed to providing high-quality products that meet the changing needs of consumers.”
When it acquired Tilray, the company stated that the purchase further strengthened Tilray’s leadership in the U.S. Craft Beer Market as it was the fifth largest craft brewery in the nation and top craft brewery in Pacific Northwest and Georgia.
It appears that Tilray has fired the entire team of operations at this local brewery. Many of the administrative and marketing staff have reportedly been terminated. Looks like all Hop Valley labels will be produced by either Widmer Brothers or 10 Barrel Bend before the summer is over.
Revolver closes
It is a continuation of a situation that occurred in Texas, where the Revolver Brewing Granbury brewery was closed 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.
P.J. Milly, who is a scientist and brewer at Revolver but has not made the official announcement on behalf of the company, posted this message to LinkedIn. Milly, posted on LinkedIn that his team had “concluded all major operations” at the brewery. Breckenridge Brewery & Terrapin Beer Co. are now brewing Revolver.
Revolver is a craft brewer from the United States that Coors also acquired. It was part of a similar acquisition campaign as Hop Valley.
Sweetwater stalls
Tilray entered the brewing business in 2021 when it merged Aphria, which acquired SweetWater Brewing for $300 million in 2020. Tilray then went on a buying spree and bought dozens of craft brands, as the market trend began to slow.
Tilray purchased eight beverage and beer brands in 2023 from Anheuser-Busch. This included Shock Top Breckenridge Brewery Blue Point Brewing Company 10 Barrel Brewing Company Redhook Brewery Widmer Brothers Brewing. The company estimated that the agreement would generate revenue of $250 million.
After rebranding as Breckenridge pub, SweetWater closed its Fort Collins production brewery during the summer of 2024.
The plan
Tilray’s recent financial filing stated that this change is part of a plan by the company to optimize its distribution mix through a program for consolidating distributors. The strategy was called “portfolio-rationalization initiatives.”
According to the filing: “As a result of the decline in growth of the craft beer market and distribution consolidation, we work with our distributors to streamline our product portfolio, eliminating duplicates and products that have slowed growth, which immediately reduced revenue.”
Tilray reported that its SKU rationalization and geographical rationalization led to a net sale reduction of $14.0m for the nine-month period ending February 28th, 2025. The filing stated that “for the fiscal year which ends May 31, 2025 it is expected that these initiatives would result in a decrease of about $20.0 million net sales. This will, we think, be offset by growth in our new products, such as in new drink categories and brand extensions in the coming 12 months.”
The company said that it continues to invest in its marketing, promotions and infrastructure to help reestablish its brands’ dominance within their respective core markets.
It may be harder said than done. The company has a history of angering locals, by purchasing breweries then firing long-time workers.
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 is yet to respond to a comment request.