At a Glance:
- Monster Beverage acquired the craft beer and hard seltzer company CANarchy Craft Brewery.
- The deal was worth $330 million and excluded the CANarchy’s stand-alone restaurants
- Monster hopes to benefit from CANarchy’s alcoholic beverage development.
Recently, Monster Beverage acquired the CANarchy Craft Brewery Collective LLC- a craft beer and hard seltzer company, at a cash deal worth $330 million. The deal did not include CANarchy’s stand-alone restaurants. After the acquisition, CANarchy will be operating independently with the existing leadership team.
Monster and CANarchy partnership benefits
This deal will help Monster Beverages to expand in the alcoholic beverages space. Furthermore, it will also add brands like Oskar Blues, Cigar City, Wasatch, Squatters, and Perrin Brewing to its portfolio. Monster Beverages will be gaining benefit from CANarchy’s alcoholic beverage development expertise and its manufacturing capabilities, alongside its existing license and infrastructure.
Monster Beverage has been witnessing growth and is one of the leading brands in the energy drink market. In Q3 of 2021, Monster Energy Drink net sales were advanced 14.3% year over year to $1.33 billion.
Beverage companies expanding the portfolio
Alike Monster, several other beverage companies are expanding into new categories like energy drinks, alcoholic beverages, and ready-to-drink beverages to drive growth. By adding alcoholic drinks to the portfolio will eventually bridge the gap between soft drinks and the spirits industry. In 2021, Coca-Cola partnered with Molson Coors to launch Topo Chico Hard Seltzer in Latin American markets and the U.S., which market Coca Cola’s entry into the hard seltzer space. Furthermore, PepsiCo PEP collaborated with Boston Beer aims to launch alcoholic beverages under the Mountain Dew brand by February. Hard-Mtn Dew will be containing 5% alcohol and zero sugar.