SAWT BEIRUT INTERNATIONAL

| 27 September 2022, Tuesday |

Monster Beverage to buy craft-beer maker in alcohol market drive

Monster Beverage Corp is entering the alcoholic beverages industry with a $330 million acquisition of craft beer and hard seltzer manufacturer CANarchy Craft Brewery Collective LLC.

The all-cash transaction, announced on Thursday, continues the trend of soft-drink corporations expanding into the alcohol industry, as conventional distinctions between the categories become increasingly blurred.

Coca-Cola Co (KO.N) has collaborated with brewer Constellation Brands Inc (STZ.N) to introduce Fresca-branded ready-to-drink cocktails, while PepsiCo Inc (PEP.O) has collaborated with Boston Beer Co (SAM.N) to develop a Mountain Dew-branded alcoholic beverage.

Monster stated that the acquisition will add craft beer labels Cigar City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters, and Wasatch to its portfolio while leaving CANarchy’s restaurants out.

Monster Energy, Burn Energy Drink, and Full Throttle Energy Drink are now developed and marketed by Monster, whose largest stakeholder is Coca-Cola.

Monster’s co-Chief Executive Officer Hilton Schlosberg said in a statement that the transaction represents a “springboard” into the alcoholic beverage industry.

“The purchase will offer us with a completely in-place infrastructure, including employees, distribution, and licensing, as well as knowledge in alcoholic beverage research and manufacture in this business,” Schlosberg added.

According to its website, CANarchy supplies craft drinks throughout the United States as well as 20 nations and U.S. territories, and it has seven manufacturing centers and 900 workers.

The deal is expected to close in the first calendar quarter of this year.

“The purchase will offer us with a completely in-place infrastructure, including employees, distribution, and licensing, as well as knowledge in alcoholic beverage research and manufacture in this business,” Schlosberg added.

According to its website, CANarchy supplies craft drinks throughout the United States as well as 20 nations and U.S. territories, and it has seven manufacturing centers and 900 workers.
The transaction is likely to finalize in the first quarter of this year.

    Source:
  • Reuters