Tilray Brands announced it will cease beer production at its Terrapin brewing facility located in Athens, Georgia, with the transition taking effect on September 25. The company stated that brewing operations would be relocated to other facilities within its existing brewery network across the United States.
The Nasdaq-listed cannabis and beverages company characterized the move as part of broader efforts to optimize its US brewing operations and support its long-term business model. A company spokesperson noted that the company operates robust brewing facilities throughout the country, and the transition would allow it to maintain customer service while utilizing the scale and capabilities of its broader brewery network. The Athens location’s taproom, warehouse, and repack operations are expected to remain open and continue serving customers.
The closure is part of a larger restructuring initiative within Tilray’s beverages division. In its 10-K filing submitted at the end of July, the company disclosed that beverage division restructuring was connected to “Project 420,” a program announced the previous year aimed at identifying synergies to improve profitability in its drinks business. That program included plans for the closure and consolidation of brewery and related facilities including Redhook, Terrapin, Atwater, Hop Valley, and Revolver.
Tilray emphasized that Terrapin remains a valued brand within its craft beer portfolio and that its commitment to the brand and its consumers remains unchanged. The company also noted that in June, it had sold Atwater Brewery to founder Mark Rieth, a transaction the company said aligned with its strategy to focus on high-performing brands and scalable operations.
For the fiscal year ended May 31, beverage net revenue increased 6 percent to $254 million, though gross profit declined 2 percent to $91.2 million and gross margin contracted to 36 percent from 39 percent. In the fourth quarter, beverage net revenue rose 61 percent to $105.6 million while gross profit increased 62 percent to $40.6 million, with gross margin holding steady at 38 percent.
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