Tilray Targets US$10 Million in Savings in Canadian Cannabis Consolidation

Tilray Brands announced on November 2, 2026 that it will consolidate its Canadian cannabis operations, moving cultivation and pre-roll production out of its Foss facility in Fenwick, Ontario and into its Masson, Quebec and Cayuga, Ontario facilities. The company expects the initiative to generate approximately US$10 million in annualized cost savings by the end of fiscal 2028.

Alongside the consolidation, Tilray raised the lower end of its fiscal 2027 Adjusted EBITDA guidance and now expects Adjusted EBITDA of $70 million to $75 million, compared with its previous guidance of $68 million to $75 million. The company attributed the increased outlook to its continued focus on operational efficiency and profitability, including anticipated benefits from cost-reduction initiatives currently underway.

Chairman and Chief Executive Officer Irwin D. Simon said the actions reflect “our commitment to operating with greater efficiency, financial discipline and a clear focus on profitability.” Simon said Tilray expects to lower its cost structure, expand margins and generate stronger cash flow while maintaining the capacity and quality to serve growing demand in Canada and international markets.

Facility Consolidation and Capacity

Tilray’s Canadian footprint spans 4.2 million square feet of cultivation capacity across its Aphria One and Aphria Diamond facilities in Leamington, Ontario, outdoor cultivation operations in Cayuga, Ontario, the Masson facility in Quebec and Broken Coast operations in British Columbia. Under the plan, cultivation at Foss will move to Masson, which Tilray describes as a state-of-the-art cultivation facility with higher yields and lower operating costs, while pre-roll production will consolidate at Cayuga.

Through further optimization and greater-than-expected yields, Masson can increase its annual cultivation capacity from approximately 32.5 to 50 metric tonnes, according to the company. Tilray expects Masson to reestablish its prior EU-GMP certification in calendar 2027, which will expand its ability to serve international medical cannabis markets and, as regulatory frameworks evolve, provide flexibility to serve potential future demand in the U.S. and other markets.

Pre-rolls represent approximately one-third of Tilray’s Canadian adult-use sales and grew 28% in fiscal 2026, and consolidating their production at Cayuga will further leverage existing infrastructure, improve operating efficiencies and provide scalable capacity to support continued demand in the category.

Blair MacNeil, president of Tilray Canada, said the company expects to ship more than 8 metric tonnes of cannabis this fiscal year across Canada and international markets. MacNeil said the size of the Foss facility limited the number of strains Tilray could efficiently manage, and that transitioning cultivation to Masson provides greater expected flexibility to expand strain offerings and drive innovation across the Redecan portfolio.

“Redecan remains an important part of our brand portfolio,” MacNeil said, adding that affected Foss employees have been offered opportunities at other Tilray facilities.

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, and is evaluating opportunities to maximize the value of the Foss asset.