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Tilray cuts drinks jobs, despite recent acquisitions
Canadian drinks and cannabis company Tilray Brands has cut jobs in its beverage division, according to reports.
Confirming the decision, Tilray revealed in a statement that the move to “restructure” was to “streamline” operations and noted that it had been a “difficult decision” but planned to “reallocate resources accordingly”.
In a report via just-drinks, a spokesperson for Tilray admitted: “We implemented a reduction in force that impacted a limited number of employees across various departments. This decision was not taken lightly, and we are committed to supporting those affected by these changes through this transition.”
The move follows Tilray recently having acquired four craft breweries from Molson Coors in a deal that saw Tilray adding Hop Valley Brewing Co., Terrapin Beer Co., Revolver Brewing, and Atwater Brewery to its portfolio.
Last year, Tilray acquired Blue Point Brewing, Shock Top, Breckenridge Brewery and Square Mile Cider from AB InBev. Tilray Brands net revenue from its alcohol business increased 117% to US$47 million in the second quarter of 2023.
Tilray CEO Irwin Simon also hinted that the business’s newly-acquired drinks portfolio essentially establishes Tilray into a good position to get into THC beverages should the US cannabis laws change in the future, giving the business scope to grow throughout America.
Back in 2018, AB InBev and Tilray to invested US$100m in non-alcoholic cannabis drinks in a bid to develop a “deeper understanding” of non-alcoholic beverages containing THC and CBD in order to “guide future decisions”.
The decision, which positioned the companies at the forefront of trends across the beverage and cannabis sectors, can now be considered an insightful move showing that rather than one product cannibalising the other, the assets are in fact complementary.
Irrespective of the business’s moves within the beverage sector, the fact remains that Tilray is reassessing the structure of the business model it has created and its next moves are being eyed by the rest of the industry.
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