Monster Beverage Corporation purchased Deep Ellum Brewing Company (DEBC) in a $330 million all-cash agreement with CANarchy Craft Brewery Collective LLC–the most lucrative deal to date for CANarchy.
The new acquisition adds six craft beer companies to the collection at Monster. Along with DEBC, the Monster portfolio instantly expands through the simultaneous procurement of Cigar City, Oskar Blues, Perrin Brewing, Squatters, and Wasatch.
Monster–most popularized for its energy drinks–now deep dives, albeit virginally, into the liquor realm through the CANarchy acquisition.
“This transaction provides us with a springboard from which to enter the alcoholic beverage sector,” said Monster’s Vice Chairman and Co-Chief Executive Officer Hilton Schlosberg. “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.”
This latest development is another chapter in the CANarchy chronicles. The Craft Brewery Collective is still embroiled in a lawsuit with DEBC Founder John Reardon, fired in 2020 after CANarchy purchased a majority of DEBC in 2018.
Reardon claims that he was not compensated by CANarchy as agreed (as part of the original 2018 sale).
The lawsuit claims that CANarchy did not promote and distribute a healthy supply of Deep Ellum Brewing products, causing sales of the brand to slump and Reardon not to get the earnouts that he maintains he deserves.
In a statement, Monster disclosed that the transaction with CANarchy will be completed during the first quarter of 2022. CANarchy will function independently from the energy drink division of Monster. CANarchy will also retain its organizational hierarchy as helmed by Tony Short.
