Energy drinks giant Monster Beverage Corp. announced Jan. 13 that they have reached a $330 million deal to purchase craft beer and hard seltzer producer CANarchy Brewery Collective, LLC, officially entering the alcoholic beverage industry.
This purchase may not come as a surprise — recent months have seen numerous announcements of soft beverage mammoths foraying into alcohol. Immediate examples are Coca-Cola’s Fresca collaboration with Constellation, and PepsiCo partnering with Boston Beer Company to create alcoholic Mountain Dew.
CANarchy, established in 2015, describes itself as a “disruptive collective of like-minded brewers dedicated to bringing high-quality, innovative flavors to drinkers in the name of craft beer.” The group was also financially backed by Fireman Capital Partners, a private equity firm led by the founder of Reebok, as VinePair reported in 2018.
Monster’s purchase of CANarchy puts many popular craft beer brands from across the country under its control, including Cigar City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters and Wasatch. CANarchy’s restaurants were not included in the sale.
According to its website, CANarchy’s beverages are sold throughout the United States, 20 countries and U.S. territories, with seven manufacturers and 900 employees.
“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,” Hilton Schlosberg, Monster’s Vice-Chairman and co-Chief Executive Officer, said in the press release.
This deal is expected to close before the first quarter ends in April, with Monster paying the entire $330 million in cash.