I'll post something positive as soon as I find it'excess capacity' means they have too much production - and not enough sales.
Just like their Canadian cannabis.
Tilray aka Simple Simon - over estimated alcohol demand, just like they did with cannabis by overpaying for Hexo ($250 million for vacant, idle, facilties)
Beverage alcohol gross margin:
Gross margin of 41% for the three months ended August 31, 2024 decreased from 53% in the prior year period. Adjusted gross margin of 41% for the three months ended August 31, 2024 decreased from 56% in the prior year period. The decrease in the adjusted beverage alcohol gross margin during the three months ended August 31, 2024 was a result of the newly acquired brands in our Craft Acquisition, which have lower margins than our historical business. We are continuing to manage the temporary excess capacity within the acquired breweries, which have already begun seeing optimization and enhanced utilization as well as favorable sales mix. As a result of the seasonality of our beverage business, our third quarter ended February 29, 2024 is our most comparable period reflecting the newly acquired craft brands, to which we improved gross margin by 300 basis points for the aforementioned reasons