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North American drinks and cannabis products business Tilray Brands is cutting more than 300 SKUs from its beverages business as part of its growth plan, Project 420.
Speaking on a call to analysts on Friday (10 January), CEO Irwin Simon said the group is "eliminating over 300-plus SKUs, and we're ultimately eliminating states where we sold some of our brands before".
In a statement, the company said the portfolio rationalisation was a "response to the declining growth in the craft beer industry and consolidation of distributors".
Tilray did not disclose which SKUs had been removed from its roster when asked by Just Drinks.
Project 420, which is already underway, looks to generate $25m through "cost savings, synergies and cost avoidance initiatives", Tilray said in a statement on Friday.
The Mollo Seltzers producer said it had already achieved $17m of the $25m target.
Tilray's first entered drinks in 2020 with its acquisition of SweetWater. The group's Beverage division expanded further in 2023 with a deal for a clutch of US assets from Anheuser-Busch InBev which included Blue Point Brewing Company.
The group then acquired four craft breweries from Molson Coors for an unknown sum. The following October, the group then revealed it was reviewing plans to potentially consolidate its US breweries.
Project 420 will "support the growth of these acquired brands and establish a clear path to profitability", Tilray said.
Simon told analysts "the majority" of rationalisation would be complete by the end of its fiscal year, but that some of it could spill into 2026.
Alongside cutting SKUs, part of Project 420 also includes "the optimisation" of its operations, Tilray said in the statement, adding that it had "identified redundancies in our manufacturing and warehousing assets".
The company did not confirm which breweries had closed or were at risk of closing when questioned by Just Drinks, but in the investor call, Simon said a facility in Texas had already been shut.
Just Drinks has also asked the Atwater Brewery owner to confirm whether closures would result in job losses and how many jobs were expected to be at risk.
The group added that it has found and "continues to identify, the elimination of duplicative fixed costs, procurement, distribution and back-office costs".
Simon told analysts that alongside cutting SKUs, the business would also be bringing in new product, and stressed that "distributors are looking for innovation".