Is it the right strategy?Is Tilray on the right track, does Tilray have the best plan to capitalize on new markets? The importance of leadership and why an argument can be made to justify bug salaries and bonuses. Tilray has taken 2 directions that the rest of the sector has not, they are big swings, will they pan out, time will tell.
Swing 1: With a glut of supply Irwin doubled down on capacity and acquired Hexo and company.
Swing 2: Irwin entered the craft beer market to supplement revenue to lower cash burn
So far, the strategy has improved the top line, but has only fractionally improved market share in Canada, Irwin as much admitted, there's not much more market share left for him in Canada to gain. So was the Hexo acquisition the best move? The craft beer move has increased the top line to the books, but the industry is under pressure and in decline in North America, so is it a good idea to double down on craft?
Now vegetables are on the menu in Quebec, with idle families, the logic there is its better to sell vegetables than sell the facilities at pennies to the dollar. Perhaps it would have been better to not acquire them in the 1st place?
Another thing to consider is how well has thus strategy worked in the past. At Haines Celstial they are currently still underway with a massive reorg to try and clean up an messy group of assets and find focus.
Strategy is the most important job we rely on the CEO to do well. At 25m you better be right!
https://www-cbc-ca.cdn.ampproject.org/v/s/www.cbc.ca/amp/1.6991623?amp_gsa=1&_js_v=a9&usqp=mq331AQIUAKwASCAAgM%3D#amp_tf=From%20%251%24s&aoh=17051558368034&csi=1&referrer=https%3A%2F%2Fwww.google.com&share=https%3A%2F%2Fwww.cbc.ca%2Fnews%2Fcanada%2Fwindsor%2Fwindsor-craft-beer-festival-cancelled-alcohol-1.6991623
https://markets.businessinsider.com/news/stocks/hain-celestial-unveils-hain-reimagined-strategy-announces-formal-restructuring-program-1032626713