CORONA, CALIF. – Monster Beverage Corp. is acquiring the Canarchy Craft Brewery Collective, Longmont, Colo., for $330 million. Brands owned by Canarchy include such brewers as Cigar City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters and Wasatch. The acquisition does not include Canarchy’s restaurants.
“This transaction provides us with a springboard from which to enter the alcoholic beverage sector,” said Hilton Schlosberg, vice chairman and co-chief executive officer. “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.”
Canarchy was founded in 2015. Its breweries develop and process both beers and hard seltzers.
“The addition of Canarchy and its brands to the Monster beverage portfolio represents an excellent opportunity to further grow our already robust product offerings,” said Rodney Sacks, chairman and co-CEO of Monster. “We are excited to build and expand upon Canarchy’s existing brands with innovative new products.”
The alcoholic beverage space is becoming popular for several beverage brands. The Coca-Cola Co., Atlanta, recently entered into an agreement with Constellation Brands, Inc., Victor, NY, to introduce Fresca branded mixed cocktails. In August, PepsiCo, Inc., Purchase, NY, and The Boston Beer Co., Boston, entered an agreement to introduce Hard Mtn Dew. The new line is scheduled to be introduced this year.
“One of the core tenets of our innovation strategy is a belief in the power of extending strong and trusted brands in thoughtful ways to bring to market unique products that resonate with consumers,” said Mallika Monteiro, chief growth, strategy, and digital officer at Constellation Brands, when the agreement with Coca-Cola was announced on Jan. 6. “This is an exciting agreement that allows us to continue expanding our premium portfolio in ways that deliver distinctive consumer value propositions that include things like more flavor, different alcohol bases, and functional benefits.”