Tilray Brands beverage division president Ty Gilmore is departing from the company, in one of several leadership changes, the craft beverage and cannabis firm announced today.
Tilray chief growth officer Prinz Pinakatt is taking over the beverage division, effective immediately, chief corporate affairs officer Berrin Noorta shared in an email to Brewbound.
Pinakatt joined Tilray as CMO in February 2024 and was promoted to chief growth officer in November.
“We extend our gratitude for Ty’s dedication, hard work, and his valuable contributions. We wish him success in his future endeavors,” Noorta wrote.
“We have full confidence in Prinz’s ability to lead the team during this transition period and continue driving our beverage business forward,” she added.
In addition to Pinakatt’s promotion, Tilray announced that Breckenridge Distillery chief operating officer Ken Bohnet and distillery founder Bryan Nolt will lead Tilray’s spirits business going forward. They will work with Pinakatt “to leverage synergies across our beverage business,” Noorta wrote.
In yet another move, Tilray shared that Tilray Wellness president Jared Simon, no relation to CEO Irwin Simon, will now lead its hemp-derived THC beverage business.
“We are excited about the growth and innovation that this new alignment will bring,” Noorta wrote.
Tilray installed Gilmore as president of its North American beverage division in December 2022. A month before his arrival, the company acquired Montauk Brewing for $35 million.
Gilmore’s appointment also came nine months before the first of two major acquisitions, with Tilray picking up eight craft brands from Anheuser-Busch InBev (A-B) – Shock Top, Breckenridge Brewery, 10 Barrel, Blue Point, Redhook, Widmer Brothers, Square Mile Cider and HiBall Energy – in a deal valued at around $85 million in cash.
Tilray struck again a year later with the $23 million acquisition of Hop Valley Brewing, Revolver Brewing, Terrapin Beer Co. and Atwater Brewery from Molson Coors.
This year, the company has ended large-scale production at two of those breweries – Hop Valley and Revolver – transferring their operations to other facilities. Those closures removed “about $25 million of costs,” Irwin Simon shared last week during a fireside chat at TD Cowen’s Future of the Consumer Conference.
The company previously laid off “a limited number of employees across various departments” in September 2024.
Tilray ranked as the fourth largest Brewers Association-defined (BA) craft brewery in 2024. The company’s production declined 13%, to 783,495 barrels of beer, according to data in the May/June issue of the New Brewer. The company holds a 3.38% share of BA-defined craft beer volume.
Year-to-date through May 18, Tilray ranked as the 15th largest beer category vendor in off-premise retailers tracked by market research firm Circana, with more than $68.89 million in dollar sales. Dollars (-17.4%) and volume (-18%) declined double digits through early May, and those trends accelerated in the latest four-week period (-20.6% dollars, -$23.8% volume).
Shareholders Approve Reverse Stock Split
Earlier this week, Tilray shareholders approved a reverse stock split, but the company is pausing implementation of the approved split.
The reverse stock split, approved at ratios ranging from 1:10 to 1:20, aims to bring Tilray’s share price up to avoid being delisted from Nasdaq.
Should the reverse stock split be implemented, the company said it is expected to:
- Ensure compliance with Nasdaq’s listing requirements;
- Align the company’s number of outstanding shares with the size and scope of the business;
- Make Tilray more attractive to institutional investors;
- And reduce expenditures and result in up to $1 million in savings on an annual run rate basis.
Additionally, more M&A may be on the table.
“Upon implementation of the reverse stock split, the company believes it would be well-positioned for strategic opportunities and acquisitions given its strong balance sheet,” the company said in a press release.
As of the end of February, the company’s total outstanding debt was reduced by around $76 million, Tilray shared in the release. Additionally, the company’s “net debt to trailing 12-months Adjusted EBITDA is less than 1.0x.”
“Tilray’s balance sheet as of the last fiscal quarter shows a cash and marketable securities balance of approximately $250 million, which provides the company with financial strength and flexibility to pursue strategic opportunities, accretive acquisitions, invest in our businesses and further reduce outstanding debt,” Tilray added in the release.
As of press time, Tilray’s stock was trading at $0.44.
“Tilray’s opportunity in the beverage industry is immense, fueled by consumer demand for innovative products,” the company shared in today’s leadership announcement. “As we progress in meeting consumer demand for value, trusted brands, and innovative products, we remain dedicated to making strategic investments throughout our beverage business.”