Founded in 2015, CANarchy is currently the sixth largest craft brewer in the US, with products available across 20 countries.
The acquisition will bring 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) brands to the Monster beverage portfolio (the deal does not include CANarchy’s stand-alone restaurants.)
“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,” 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.”
The transaction is expected to close in the first calendar quarter of 2022 and is subject to customary closing conditions, including regulatory approvals. CANarchy will function independently, retaining its own organizational structure and team, led by Tony Short.
Monster’s move into alcoholic beverages follows moves by Coca-Cola into alcohol. Coca-Cola Amatil (now Coca-Cola Europacific Partners) bought Australian craft brewer Feral Brewing Company in 2017; adding the craft brewer to its alcohol portfolio. In the US, The Coca-Cola Company launched Topo Chico Hard Seltzer last year in partnership with Molson Coors; which is set to be followed by an alcoholic version of Fresca this year via a collaboration with Constellation Brands.