Tilray Shares Slide Amid Strategic Pivot to Craft Beer and Cost Pressures

Tilray Brands (TLRY) faced significant investor pressure in March, with U.S.-listed shares declining by nearly 18%. The slump comes as the Canadian cannabis operator continues its aggressive push into the craft brewery sector to offset chronic losses in the marijuana industry. The company recently expanded its international footprint by acquiring the U.K.-based brewery BrewDog for £33 million ($43.8 million). CEO Irwin Simon stated that the acquisition is intended to scale the company's global beverage platform to approximately $500 million in annual revenue, creating one of the largest diversified craft beverage platforms globally. However, the expansion coincides with a downturn in the craft beer market. Preliminary 2025 data indicates that craft brewery production volume in the U.S. fell by 5% year-over-year. Additionally, the company is grappling with rising aluminum costs, which have pressured margins in the beverage segment. These headwinds prompted TD Cowen analyst Robert Moskow to reduce his fair value estimate for TLRY by 30%, lowering the price target from $10 to $7. While the 'Buy' recommendation remains intact, the adjustment reflects concerns over insufficient hedging against metal price volatility. Tilray remains habitually unprofitable, caught between a struggling cannabis sector—marked by high taxes and slow U.S. decriminalization—and a cooling craft beer market. Investors are increasingly skeptical of the company's diversification strategy as it seeks a path to sustainable profitability.