In a bold move to enter the craft beer market Monster Beverage Corporation announced on Thursday (13th January) that it had entered into an agreement to acquire CANarchy Craft Brewery Collective LLC, the craft beer and hard seltzer company for $330 million in cash.
The transaction will bring the US based brands Cigar City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters and Wasatch into the Monster beverage portfolio. The transaction does not include CANarchy’s stand-alone restaurants.
Founded in 2015, CANarchy is a disruptive collective of US based brewers who’s beer is sold throughout the US and 20 countries and U.S. territories overseas.
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 and CANarchy will function independently, retaining its own organizational structure and team.
Speaking in a Press Release Monster’s Vice Chairman and Co-Chief Executive Officer Hilton Schlosberg said “This transaction provides us with a springboard from which to enter the alcoholic beverage sector. 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.”
“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. “We are excited to build and expand upon CANarchy’s existing brands with innovative new products.”
CANarchy’s Chief Executive Officer Tony Short said of the sale “The team at CANarchy is thrilled to be joining Monster. 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.”
Monster Beverage Corporation is the holding company for all the Monster Beverage energy drinks brands.