January 19, 2022

The Monster Beverage Corporation is set to launch onto the alcoholic beverage scene with the acquisition of CANarchy Craft Brewery Collective LLC.

The energy drinks manufacturing company has entered into a definitive agreement to acquire the group for $330 million (€290.976) in cash.

Monster’s vice chairman and co-CEO Hilton Schlosberg said: “This transaction provides us with a springboard from which to enter the alcoholic beverage sector.”

He added: “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 transaction will bring Perrin Brewing’s Black Ale, Squatters’ Hop Rising Double IPA and Juicy IPA, and Wasatch’s Apricot Hefeweizen brands to the Monster beverage portfolio.

It also includes Cigar City’s Jai Alai IPA and Florida Man IPA, Oskar Blues’ Dale’s Pale Ale and Wild Basin Hard Seltzer, and Deep Ellum’s Dallas Blonde and Deep Ellum IPA.

CANarchy’s stand-alone restaurants are not included in the acquisition.

The deal is expected to close in the first calendar quarter of 2022 and is subject to customary closing conditions, including regulatory approvals.

Monster’s organisational structure for its existing energy beverage business will remain unchanged.

Meanwhile CANarchy will function independently and retain its own organisational structure and team led by CEO Tony Short.

“The team at CANarchy is thrilled to be joining Monster,” 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.”

Evercore served as financial advisor and Jones Day served as legal advisor to Monster Beverage Corporation while Latham & Watkins served as legal advisor to CANarchy.

Monster’s chairman and Co-CEO Rodney Sacks said: “The addition of CANarchy and its brands to the Monster beverage portfolio represents an excellent opportunity to further grow our already robust product offerings.

“We are excited to build and expand upon CANarchy’s existing brands with innovative new products.”

Monster Beverage Corporation
Monster Energy Zero Ultralight. Credit NeONBRAND / Unsplash

Monster Beverage Corporation

Monster Beverage Corporation is a holding company based in Corona, California, and conducts no operating business except through its consolidated subsidiaries.

Its subsidiaries develop and market energy drinks which also include a range of non-carbonated beverages such as tea, coffee and shakes.

Brands include Monster Energy, Monster Energy Ultra, Java Monster, Espresso Monster, Monster Rehab, Monster Hydro, Monster HydroSport Super Fuel, Monster Dragon Tea, Muscle Monster, Monster MAXX, Reign Total Body Fuel, Reign Inferno, NOS, Full Throttle, Burn, Samurai, Relentless, Mother, Play, Power Play, BU, Nalu, BPM, Gladiator, Ultra Energy, Live+, Predator and Fury energy drinks.

CANarchy Craft Brewery

Founded in 2015, CANarchy is a disruptive collective of like-minded brewers dedicated to bringing high-quality, innovative flavours to drinkers.

The portfolio of craft brands includes offerings from Oskar Blues Brewery, Cigar City Brewing, Squatters Craft Beers, Wasatch Brewery, Deep Ellum Brewing Company and Perrin Brewing Company.

CANarchy, a top 10 US craft brewery, provides craft beverages throughout the United States and 20 countries and US territories.

Forward-Looking Statements

Certain statements made in the announcement may constitute “forward-looking statements” within the meaning of the US federal securities laws regarding the expectations of management with respect to future operating results and other future events including revenues and profitability.

The company cautions that these statements are based on management’s current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside of its control and could cause actual results and events to differ materially from the statements made.

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