Monster joins the alcoholic beverage space, strikes a deal to acquire the Austin-based beer and seltzer company that bought the Dallas brewery in 2018.
DALLAS — Deep Ellum Brewing Co. of Dallas has been acquired by Monster Beverage Corporation as part of a larger transaction, the California-based company said in a news release Thursday.
For the company behind Monster Energy, the move marks its first ever venture into the alcoholic beverage business. The company on Thursday entered into a definitive agreement to acquire CANarchy Craft Brewery Collective LLC, an Austin-based craft beer and hard seltzer company, for $330 million in cash.
CANarchy purchased Deep Ellum Brewing Co. from founder John Reardon in 2018.
Deep Ellum Brewing Company, founded by Reardon in 2011 as the first Dallas craft brewery to enter the market during a regional rush in the early 2010s, is one of the CANarchy portfolio brands Monster has acquired. The transaction does not include CANarchy’s stand-alone restaurants.
RELATED: Topo Chico Capitalizes on a Texas Tradition and Launches Its Own Ranch Water Line
Along with Deep Ellum, the transaction will also move the following brands under the Monster umbrella:
- Cigar City (Jai Alai IPA and Florida Man IPA)
- Oskar Blues (Dale’s Pale Ale and Wild Basin Hard Seltzer)
- Perrin Brewery (black beer)
- Squatters (Hop Rising Double IPA and Juicy IPA)
- Wasatch (Apricot Hefeweizen)
Monster is one of many non-alcoholic companies, including PepsiCo. and Monster’s parent company Coca-Cola, which recently entered the liquor business.
The agreement is expected to close in the first calendar quarter of 2022 and is subject to customary closing conditions, including regulatory approvals. Upon approval, CANarchy will operate independently and retain its own organizational structure and team, according to a statement from Monster.
“This transaction provides us with a stepping stone to enter the beverage alcohol business,” Monster Vice President and Co-General Manager Hilton Schlosberg said in a statement announcing the move. “The acquisition will provide us with a fully established infrastructure, including people, distribution and licensing, as well as beverage alcohol development expertise and manufacturing capabilities in this industry.”
CANarchy CEO Tony Short said his team was “thrilled” to be part of Monster.
“We look forward to capitalizing on the combined expertise of Monster and CANarchy to further strengthen our current alcohol product offerings, expand our product portfolio to meet the evolving needs of our customers, and grow our business,” said Short. in a press release.
Founded in 2015, CANarchy offers craft beverages in the United States as well as 20 other countries and U.S. territories.
Deep Ellum Brewing Co.’s corporate headquarters and tasting room are located at 2823 St. Louis St., on the edge of the Deep Ellum entertainment district after which it is named. The craft brewery produces a number of popular regional beers, including its Dallas Blonde, Infusions Deep Ellum IPA, and DTX Golden Ale. The company also produces its line of Blind Lemon flavored hard seltzer.
In 2020, Deep Ellum Brewing Co. founder Reardon, who initially stayed on board as a minority owner after his business was sold, filed a lawsuit alleging CANarchy failed to make all agreed payments to him. as part of the deal which saw the Dallas brewery change hands. Shortly after the complaint was filed, Reardon shared on social media that he was no longer employed by the company he founded.
In 2018, shortly after this initial sale, Reardon launched a new company called Deep Ellum Distillery. This new company focuses on spirits, including vodka, various flavored vodkas, whiskey and bourbon in small quantities. In 2021, the brand also started brewing its own beers.
The WFAA has contacted representatives of Deep Ellum Brewing Co. to get additional details about the transaction and what it means for the brand’s production, distribution and roster of beers and seltzers. We’ll update this story if and when those details become available.
