Monster Beverage Corporation Thursday announced a definitive agreement to acquire the US craft beer and hard seltzer company CANarchy Craft Brewery Collective for $330 million (£240m).
Monster said the transaction will provide them with a springboard to enter alcoholic beverage sector, with several leading US craft brands entering its portfolio.
“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,” said Hilton Schlosberg, Monster’s vice chairman and co-chief executive.
Monster added that the organisational structure for its existing energy beverage business will remain unchanged, with CANarchy, a top 10 US craft brewery, functioning independently, retaining its own organisational structure and team, led by chief executive Tony Short.
Short said: “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.”
Founded in 2015, CANarchy is a collective of like-minded brewers, providing craft beverages throughout the US and 20 countries and US territories. The portfolio of craft brands includes offerings from Oskar Blues Brewery (Dale’s Pale Ale and Wild Basin Hard Seltzer), Cigar City Brewing (Jai Alai IPA and Florida Man IPA), Squatters Craft Beers (Hop Rising Double IPA and Juicy IPA), Wasatch Brewery (Apricot Hefeweizen), Deep Ellum Brewing Company (Dallas Blonde and Deep Ellum IPA) and Perrin Brewing Company (Black Ale).
“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 Rodney Sacks. “We are excited to build and expand upon CANarchy’s existing brands with innovative new products.”
The deal, which does not include CANarchy’s stand-alone restaurants, is expected to close in the first quarter of 2022, subject to customary closing conditions, including regulatory approvals.