14/01/2022 – Beverages / Monster / bCANarchy / Craft Beer / Acquisition / Alcohol
Monster enters alcoholic beverage sector with it enters deal to buy CANarchy Craft Brewery Collective
California-headquartered, NASDAQ-listed energy drinks brand Monster Beverage Corp. has entered into a definitive agreement to acquire CANarchy Craft Brewery Collective LLC, a craft beer and hard seltzer company, for US$330 million in cash.
The transaction will onboard various brands – including 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) – into the Monster beverage portfolio. The transaction does not include CANarchy’s stand-alone restaurants.
The transaction is expected to close in Q1 2022 and is subject to customary closing conditions, including regulatory approvals. Monster’s organisational structure for its existing energy beverage business will remain unchanged, the firm said in a statement – CANarchy will function independently, retaining its own organisational structure and team, led by Tony Short.
Founded in 2015, CANarchy has grown to become a top 10 US craft brewery, providing craft beverages throughout the United States, plus 20 countries and US territories.
“A springboard from which to enter the alcoholic beverage sector”
“This transaction provides us with a springboard from which to enter the alcoholic beverage sector,” said Monster’s Vice Chairman and Co-CEO, 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.”
“The addition of CANarchy and its brands to the Monster beverage portfolio represents an excellent opportunity to further grow our already robust product offerings,” commented Monster’s Chairman and Co-CEO, Rodney Sacks. “We are excited to build and expand upon CANarchy’s existing brands with innovative new products.”
“The team at CANarchy is thrilled to be joining Monster,” remarked CANarchy’s CEO, Tony Short. “We look forward to capitalising 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.”
Evercore served as financial advisor, and Jones Day served as legal advisor to Monster. Latham & Watkins served as legal advisor to CANarchy.
The Hotel & Hospitality Show 2023
Sandton Convention Centre, South Africa
THAIFEX – Anuga Asia 2023