Monster Beverage announced today that the company will acquire craft beer and hard seltzer collective CANarchy.
Details of the deal can be found here. https://investors.monsterbevcorp.com/news-releases/news-release-details/monster-beverage-corporation-acquire-canarchy-craft-brewery
CANarchy provides a "springboard" for Monster to enter alcohol, the company said in a statement. Monster gets seven breweries and presumably various distribution relationships (and built-in expertise) nationwide. Brands including Cigar City are well respected in the craft beer industry and BD notes that Oscar Blues (including Dale's Pale Ale) likely overlaps significantly with key Monster Energy consumers.
In a report this morning, RBC Capital Markets analyst Nik Modi provided a key insight in early reads of the deal:
"The CANarchy Craft Brewery acquisition may imply that MNST decided to go on its own in terms of alcoholic beverage manufacturing, but it may still need a larger scale alcohol distribution network," RBC Capital Markets Nik Modi said.
Monster will hold an investor meeting today at 4:30 ET. We expect more useful commentary from the company then.
More to come in the next Beverage Digest.
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