Monster Beverage Corporation, a company involved in the production and distribution of non-alcoholic energy drinks including Monster Energy, Relentless and Burn is making a huge step into the alcoholic beverage market. Monster, in which The Coca-Cola Company holds a 19% stake, announced today that it has entered into a definitive agreement to acquire CANarchy Craft Brewery Collective, a craft beer and hard seltzer company for USD 330 million in cash.
Founded in 2015, CANarchy is one of the top 15 brewery groups in the United States (inside.beer, 30.3.2021) and operates 7 production sites there. In 2020 the company shipped 490,000 barrels of beer (584.000 hl, an increase of 2% over 2019) throughout the U.S. and 20 countries and U.S. territories.
“This transaction provides us with a springboard from which to enter the alcoholic beverage sector,” said Monster’s Vice Chairman and Co-Chief Executive Officer Hilton Schlosberg. “The acquisition will provide us with a fully in-place infrastructure, including people, distribution and licenses, along with alcoholic beverage development expertise and manufacturing capabilities in this industry.”
In November, it was already reported that Monster was seeking a deal with Constellation Brands for the production of new products like hard seltzer and cannabis drinks. (inside.beer, 22.11.2021) The now announced move will most likely make this cooperation redundant as it provides Monster with the need infrastructure.
In addition it will bring the Cigar City (Jai Alai IPA and Florida Man IPA), Oskar Blues (Dale’s Pale Ale and Wild Basin Hard Seltzer), Deep Ellum (Dallas Blonde and Deep Ellum IPA), Perrin Brewing (Black Ale), Squatters (Hop Rising Double IPA and Juicy IPA) and Wasatch (Apricot Hefeweizen) brands to the Monster beverage portfolio. The transaction does not include CANarchy’s stand-alone restaurants.
The transaction is expected to close in the first calendar quarter of 2022 and is subject to customary closing conditions, including regulatory approvals. Monster’s organizational structure for its existing energy beverage business will remain unchanged.
CANarchy will function independently, retaining its own organizational structure and team, led by Tony Short.
“The team at CANarchy is thrilled to be joining Monster,” said CANarchy’s Chief Executive Officer Tony Short. “We look forward to capitalizing on the combined expertise of Monster and CANarchy to further strengthen our current alcoholic product offerings, expand our product portfolio to meet the ever-changing needs of our customers and to grow our business.”
“The addition of CANarchy and its brands to the Monster beverage portfolio represents an excellent opportunity to further grow our already robust product offerings,” added Monster’s Chairman and Co-Chief Executive Officer Rodney Sacks.