As we’ve reported, Tilray Brands has acquired several breweries over the past couple of years. The most recent spate of acquisitions included Hop Valley Brewing, one of four brands acquired from Molson Coors Beverage Company last August. Yesterday, Brewbound reported that Tilray will cease operations at Hop Valley Brewing in Eugene, Oregon. The closing could impact as many as 50 employees. Reportedly, the Hop Valley taproom in nearby Springfield will remain open.
Tilray’s brewery portfolio includes about 20 brands. When mega breweries like Anheuser-Busch and Molson Coors started to jettison their craft breweries, Tilray took advantage of the opportunity. Redhook Brewery, Widmer Brothers Brewery, 10 Barrel Brewing, Blue Point Brewing, Revolver Brewing, Breckenridge Brewery, Terrapin Beer, Hop Valley Brewing, and the others are under Tilray’s umbrella. Because of the nature of its business, and though it may not make sense to most craft beer enthusiasts, Tilray fits the Brewers Association’s definition of a craft brewer. As such, it likely ranks as one of the four largest craft brewers in the nation.
Hop Valley Brewing was founded in 2009. In 2016, it was acquired by Molson Coors. At its zenith, the brewery produced 110,000 barrels in 2021. More recently, it produced a reported 75,000 barrels in 2023.
Consolidating Operations
So why shut down Hop Valley? It’s a matter of consolidation. Tilray says Hop Valley’s beers will now get brewed at other Tilray-owned breweries in the region. The company owns a number of breweries, some of them quite large by craft beer standards, so it makes financial sense for the company to consolidate operations, especially since many of its breweries are operating below capacity. The decision to shutter Hop Valley mirrors the February closing of Revolver Brewing in Texas. Also, you might remember that Tilray laid off the entire innovations brewing team at 10 Barrel Brewing last September.
Tilray chief corporate affairs officer Berrin Noorata told Brewbound: “This decision is part of the Project 420 strategic plan, which aims to improve efficiency and collaboration within our beverage organization by optimizing resource allocation and leveraging synergies across Tilray’s beverage organization. The Hop Valley taproom in Springfield will remain open, serving customers with our latest and most innovative brews.”
