We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tilray Brands' Bullish Beverage Strategy: What's Behind the Optimism?
Read MoreHide Full Article
Key Takeaways
TLRY Beverage revenues fell 10.6% to $50.1M in fiscal Q2 2026 due to craft beer weakness and competition.
TLRY achieved $27M in annualized Project 420 savings and improved brand distribution from 2025 spring resets.
TLRY holds over 45% THC beverage share in Canada and is expanding beverages into the U.K. and MEA markets.
In the second quarter of fiscal 2026, Tilray Brands (TLRY - Free Report) posted net revenues of $50.1 million in its Beverage business, reflecting a 10.6% decrease year over year. The downturn was largely due to continued category challenges within the craft beer segment and competitive pressures. The company advanced its portfolio optimization efforts under Project 420, including SKU rationalization and margin-focused initiatives, which also weighed on the results.
Tilray Brands sees long-term potential for the beverage category, supported by a diversified mix of offerings. The company is making progress in improving performance, with more to come as it continues to integrate beer brands, streamline operations and optimize processes. Several of the beverage brands that Tilray acquired were previously witnessing a decline but are presently showing promising results with healthier growth trends, helping it regain lost sales authorization at retail.
Through Project 420, the company delivered $27 million in annualized cost savings in the first half of the year and remains on track toward the $33 million target. The 2025 Spring retail product resets improved distribution of core brands and key innovation initiatives, including Shock Top, Runner’s High non-alcoholic, and SweetWater Brewing’s Day Trip and Dive Beer. Tilray has started to see the early impact of these gains throughout fiscal year 2026.
Additionally, the company operates a leading THC beverage operation across Canada with more than 45% of the THC beverage market share. Management notes that Tilray is ready to produce and sell in the U.S. market should federal legalization of cannabis THC drinks occur.
International growth also remains a focus. Tilray plans to leverage future strategic partnerships to expand its Beverage business into new markets worldwide, with a focus on craft beer and nonalcoholic drinks. HiBall Energy is set to launch in the U.K. in the fourth quarter, with expansion plans underway for the Middle East and Africa. The company also continues to explore opportunities to further scale its global craft beer segment.
Latest News From TLRY’s Peers: CGC & VRNO
Canopy Growth Corporation (CGC - Free Report) has entered into a series of transactions to recapitalize its balance sheet and extend the maturity dates of all outstanding indebtedness to January 2031 at the earliest. At the completion of these transactions, Canopy Growth is expected to have cash on hand of approximately C$425 million, providing additional flexibility to support the company’s long-term priorities.
Verano Holdings Corp. (VRNO - Free Report) announced the launch of Swift Lifts as an independent brand, offering a robust line-up of premium pre-roll offerings that are perfectly portioned and designed to deliver quality and convenience. The Swift Lifts brand rollout demonstrates Verano’s ongoing focus on delivering strategic new product innovation in rapidly-expanding cannabis categories.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Tilray Brands' Bullish Beverage Strategy: What's Behind the Optimism?
Key Takeaways
In the second quarter of fiscal 2026, Tilray Brands (TLRY - Free Report) posted net revenues of $50.1 million in its Beverage business, reflecting a 10.6% decrease year over year. The downturn was largely due to continued category challenges within the craft beer segment and competitive pressures. The company advanced its portfolio optimization efforts under Project 420, including SKU rationalization and margin-focused initiatives, which also weighed on the results.
Tilray Brands sees long-term potential for the beverage category, supported by a diversified mix of offerings. The company is making progress in improving performance, with more to come as it continues to integrate beer brands, streamline operations and optimize processes. Several of the beverage brands that Tilray acquired were previously witnessing a decline but are presently showing promising results with healthier growth trends, helping it regain lost sales authorization at retail.
Through Project 420, the company delivered $27 million in annualized cost savings in the first half of the year and remains on track toward the $33 million target. The 2025 Spring retail product resets improved distribution of core brands and key innovation initiatives, including Shock Top, Runner’s High non-alcoholic, and SweetWater Brewing’s Day Trip and Dive Beer. Tilray has started to see the early impact of these gains throughout fiscal year 2026.
Additionally, the company operates a leading THC beverage operation across Canada with more than 45% of the THC beverage market share. Management notes that Tilray is ready to produce and sell in the U.S. market should federal legalization of cannabis THC drinks occur.
International growth also remains a focus. Tilray plans to leverage future strategic partnerships to expand its Beverage business into new markets worldwide, with a focus on craft beer and nonalcoholic drinks. HiBall Energy is set to launch in the U.K. in the fourth quarter, with expansion plans underway for the Middle East and Africa. The company also continues to explore opportunities to further scale its global craft beer segment.
Latest News From TLRY’s Peers: CGC & VRNO
Canopy Growth Corporation (CGC - Free Report) has entered into a series of transactions to recapitalize its balance sheet and extend the maturity dates of all outstanding indebtedness to January 2031 at the earliest. At the completion of these transactions, Canopy Growth is expected to have cash on hand of approximately C$425 million, providing additional flexibility to support the company’s long-term priorities.
Verano Holdings Corp. (VRNO - Free Report) announced the launch of Swift Lifts as an independent brand, offering a robust line-up of premium pre-roll offerings that are perfectly portioned and designed to deliver quality and convenience. The Swift Lifts brand rollout demonstrates Verano’s ongoing focus on delivering strategic new product innovation in rapidly-expanding cannabis categories.