Tilray Brands’ cost-cutting measures continue with closure of the Redhook Brewlab in Seattle’s Capitol Hill neighborhood. Chief corporate affairs officer Berrin Noorta told Brewbound that “Redhook Brewlab is now closed as we look for a new location.”
“Redhook remains committed to delivering exceptional craft beer experiences,” she added. “During this transition period, Redhook beer will continue to be brewed and available, ensuring that our loyal customers can still enjoy their favorite brews without interruption.”
The Puget Sound Business Journal previously reported plans to close the 10,000 sq. ft. brewpub, which opened in 2017 under Craft Brew Alliance’s ownership and was later absorbed in the craft platform’s sale to Anheuser-Busch InBev. The space was offloaded two years ago to Tilray in the sale of 8 craft brands, including Redhook.
A Reddit poster who claimed to be a former employee and GM broke the news on the forum, citing “overhead (specifically exorbitant rent)” and a shift in strategy from showcasing Redhook’s beers and collabs to becoming profitable.
Under the Project 420 banner, Tilray has implemented several cost-cutting measures, including ceasing large-scale brewing operations at its Revolver facility in Granbury, Texas, and shuttering its Hop Valley brewery in Eugene, Oregon. Production at those breweries will transfer production to other Tilray-owned facilities.
During TD Cowen’s Future of the Consumer Conference last week, Tilray CEO Irwin Simon said the moves “took about $25 million of costs out so far.”
“We look to take more,” he added. “So there’s some work to do on our beverage business.”
Simon explained that the company doesn’t “want to be running capacity today at 50%” and Tilray’s breweries need to operate more efficiently.
Earlier this week, Tilray shook up its beverage leadership team earlier this week, with the exit of beverage division president Ty Gilmore and the promotion of chief growth officer Prinz Pinakatt.
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.
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).
Of the company’s vast craft portfolio, only SweetWater 420 Extra Pale Ale ranked among Circana’s top 30 craft brand lists. It was the 29th largest craft brand in convenience stores YTD through May 18, with dollar sales of $2.739 million, up 3.6% year-over-year.