Tilray Brands today announced plans to consolidate its Canadian cannabis operations, transitioning cultivation and pre-roll production from its Foss facility in Fenwick, Ontario to its Masson, Quebec and Cayuga, Ontario facilities.
The company said the move is expected to generate approximately $10 million in annualized cost savings by the end of fiscal 2028. The transition of cultivation to Masson, a cannabis cultivation facility with higher yields and lower operating costs, is expected to further improve operating efficiency and increase profitability.
“We have built one of the largest and most sophisticated cannabis operating platforms in Canada. Now, our focus is on unlocking its full value. These actions reflect our commitment to operating with greater efficiency, financial discipline and a clear focus on profitability. By leveraging the scale and infrastructure we have already established, we expect to lower our cost structure, expand margins and generate stronger cash flow, while maintaining the capacity and quality to serve the growing demand in Canada and international markets. We are making deliberate decisions to strengthen our competitive position, maximize returns on our investments and deliver sustainable long-term value for our shareholders," said Tilray CEO Irwin D. Simon in a statement.
Blair MacNeil, President of Tilray Canada, stated: “We are taking decisive steps to build a more efficient, competitive and profitable Canadian cannabis business. Greater-than-expected yields at Masson, together with increased yields across the rest of our Canadian cultivation operations, give us greater flexibility to optimize production, reduce costs and invest behind the growth of our leading brands. This stronger operating platform positions us to respond to evolving consumer demand and capture growth opportunities in Canada and internationally where we expect to ship more than 8 metric tonnes of cannabis this fiscal year. The size of the Foss facility limited the number of strains we could efficiently manage. Transitioning cultivation to Masson gives us greater expected flexibility to expand our strain offerings and drive greater innovation across the Redecan portfolio," said Tilray Canada President Blair MacNeil in a statement.
The company said it's offered affected Foss employees opportunities at other Tilray facilities.
The company’s current Canadian footprint spans 4.2 million square feet of cultivation capacity across its flagship Aphria One and Aphria Diamond facilities in Leamington, Ontario, outdoor cultivation operations in Cayuga, Ontario, its Masson facility in Quebec, and Broken Coast operations in British Columbia.
The transition will be implemented in phases to complete current cultivation and harvest cycles, with Foss operations expected to conclude by January 31, 2027. Tilray expects uninterrupted supply across its brand portfolio throughout the transition, including continued availability of Redecan products, while evaluating opportunities to maximize the value of the Foss asset.
