Monster Jumping Into Booze Business With $330 Million CANarchy Buy
January 13 2022 - 8:51AM
Dow Jones News
By Colin Kellaher
Monster Beverage Corp. on Thursday said it is entering the
alcoholic-beverage sector with a deal to buy craft-beer and
hard-seltzer company CANarchy Craft Brewery Collective LLC for $330
million in cash.
Monster, a Corona, Calif., beverage maker best known for its
namesake energy drinks, said the acquisition includes the Cigar
City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters and
Wasatch brands but excludes CANarchy's stand-alone restaurants.
Monster's deal comes as beverage companies across the spectrum
move into in new categories in a bid to spur growth.
Coca-Cola Co., which last year pulled the plug on an energy
drink it had hoped would compete with Monster, last week said it
struck a deal with Corona beer brewer Constellation Brands Inc. to
launch cocktails based on its Fresca soda brand. Rival PepsiCo Inc.
and Samuel Adams brewer Boston Beer Co. are set to roll out an
alcoholic version of the Mountain Dew soft drink.
Monster said it expects to complete the transaction during the
first calendar, adding that the organizational structure for energy
drinks business will remain unchanged, and that CANarchy will
function independently, retaining its own organizational structure
and team.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
January 13, 2022 08:36 ET (13:36 GMT)
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