Monster Beverage Corporation is closing the brewery and taproom of Deep Ellum Brewing Co. Production of the beers will be moved to one of the other breweries in the group, and the products “will remain available throughout Texas, [...] for many years to come,” the company said on Instagram.
Monster Brewing, which comprises the brands and assets of the former CANarchy Craft Brewery Collective, has facilities in several US states, including Oskar Blues Brewery, Longmont, CO; Revitalyte, Minneapolis, MN; Perrin Brewing Co, Comstock, MI; Oskar Blues Brewery, Brevard, NC; Cigar City Brewing Co, Tampa, FL; Deep Ellum Brewing Co, Dallas, TX; and Wasatch Brewery and Squatters Craft Beers, both in Salt Lake City, UT. The headquarters is located in Corona, CA.
“After 12+ amazing years of brewing and serving our beers in Deep Ellum, we've made the difficult decision to close our taproom and brewhouse. From the great folks who've worked here to those who've joined us for a pint or a show, we'd like to thank everyone that's been a part of our journey,” the Instagram post stated.
Monster, a company involved in the production and distribution of non-alcoholic energy drinks including Monster Energy, Relentless, and Burn, entered the alcoholic beverage market in 2022 when it acquired CANarchy Craft Brewery Collective, a craft beer and hard seltzer company and one of the top 15 brewery groups in the United States, for USD 330 million.
Part of the deal was Deep Ellum Brewing Co in Dallas, TX. The brewery was started in 2011 by founder John Reardon and became well-known for its signature brews, Dallas Blonde and Deep Ellum IPA. In 2018, when the brewery was one of the fastest-growing breweries in Texas and urgently needed financing to complete a USD 3 million expansion, Reardon sold the brewery to CANarchy.
Monster Beverage Corporation, a publicly listed company in which The Coca-Cola Company currently holds a 19.51% share, is a holding company and conducts no operating business except through its consolidated subsidiaries. Its namesake product, Monster Energy, is an energy drink that was created by Hansen Natural Company (now Monster Beverage Corporation) in April 2002. As of 2022, Monster Energy had a 30.1% share of the American energy drink market, the second-highest after Red Bull.
A few weeks ago, Monster Beverage announced that co-CEO Rodney Sacks would reduce his daily responsibilities next year, with co-CEO Hilton Schlosberg becoming the sole chief executive while Sacks remains chairman. (inside.beer, 9.5.2024)
The company is performing strongly. In the first quarter of 2024, net sales rose 11.8% to USD 1.9 billion, with USD 1.73 billion from energy drinks. Gross profit margin increased to 54.1% from 52.8% in the same period in 2023. Operating income grew from USD 485 million to USD 542 million, and net income rose 11.2% to USD 442 million, up from USD 397 million.
