Monster Beverage acquires CANarchy for $300 million (Cigar City, Oskar Blues, and more)

Discussion in 'Beer News & Releases' started by shand, Jan 13, 2022.

  1. shand

    shand Poo-Bah (1,741) Jul 13, 2010 Florida
    Society Trader

    https://www.marketwatch.com/story/m...lion-buy-of-canarchy-craft-brewery-2022-01-13
    CANarchy was owned by private equity firm Fireman Capital before this sale.
     
  2. MistaRyte

    MistaRyte Defender (637) Jan 14, 2008 Virginia
    Trader

    Get ready for Ten Fidy Energy Drink!
     
  3. JackHorzempa

    JackHorzempa Poo-Bah (5,283) Dec 15, 2005 Pennsylvania
    Society

    So, Fireman Capital has finally ‘flipped’ their investment.

    Below are some snippets from the below linked article:

    “Private equity companies aren’t in it for the passion, they are in it for the money,” Brewers Association director Paul Gatza said in a 2016 speech.”

    And:

    “I don’t know what will ultimately happen, but what is so attractive is that there is no time limit that is set,” echoed Three Weavers co-founder Lynne Weaver a month later, telling Brewbound she was excited by “a lot of different options” for long-term planning under CANarchy.”

    Also:

    “This is worth consideration when another recent analysis by consulting firm Bain & Company showed a growing preference toward longer holding periods of up to 15 years. Again, this isn't specific to beer, but the report indicated a definite financial benefit of holding onto businesses as a long-term strategy, suggesting that such a move would continue to multiply in value until around year 22 or 23.”

    And:

    “With other business investments, Fireman was oddly specific in selling companies for prices approximately three times what they paid,…”

    Perhaps some other BA(s) can figure out the financial details here. Did Fireman obtain three times what they paid for this sale?

    Should we set the timer to see when Artisanal Beverage Venture (owners of Southern Tier, Victory, Sixpoint,…) ‘flips’ their business?

    Cheers!

    https://www.goodbeerhunting.com/sig...o-the-right-is-an-ipo-the-future-for-canarchy
     
  4. JackHorzempa

    JackHorzempa Poo-Bah (5,283) Dec 15, 2005 Pennsylvania
    Society

    Or maybe brand the energy drink as Tree Fidy (in alignment with the price?). :stuck_out_tongue:

    Cheers!
     
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  5. MNAle

    MNAle Poo-Bah (2,262) Sep 6, 2011 Minnesota
    Society

    And, yet, they still considered them to be "independent."

    I suppose, by the Brewers Association definition, they still are. :rolling_eyes:
     
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  6. jesskidden

    jesskidden Poo-Bah (2,359) Aug 10, 2005 New Jersey
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    So, CANarchy (if they keep the name) will remain "Craft" according to the current Brewers Association definition since Monster Beverage Co. is not currently "a beverage alcohol industry member" but is partially owned by Coca-Cola. Monster has been rumored to be interested in a deal to sell to Constellation (US brewer/owner of Corona and Modelo).
     
  7. MNAle

    MNAle Poo-Bah (2,262) Sep 6, 2011 Minnesota
    Society

    The Brewer's Association ignores that large corporate owners act like large corporate owners no matter what business they are in.

    The idea that a subsidiary of Monster Beverage Co. / Coca-Cola is in the same class of "independence" and that their corporate owners care as much about the craft of brewing as the owners of the small brewpub down the street is beyond absurd.
     
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  8. SFACRKnight

    SFACRKnight Poo-Bah (1,948) Jan 20, 2012 Colorado
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  9. JackHorzempa

    JackHorzempa Poo-Bah (5,283) Dec 15, 2005 Pennsylvania
    Society

    It is my interpretation that it is taking longer these days for Private Equity firms to obtain their profits (x3) (as discussed/quoted above).

    I listened to the audio of the article you linked. It would seem that 2022 will be the year of the alcoholic soda (e.g., Alcoholic Mountain Dew)? Oh boy, more stuff to displace beer from my local retailers' shelves. :slight_frown:

    Non-cheers to hard soda!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
     
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  10. HouseofWortship

    HouseofWortship Meyvn (1,012) May 3, 2016 Illinois
    Trader

    Get that capital out so you can buy low when the economy crashes.
     
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  11. jesskidden

    jesskidden Poo-Bah (2,359) Aug 10, 2005 New Jersey
    Society Trader

    Didn't we already have one of those recently (e.g., Pabst's Not Your Father's Root Beer, Not Your Mother's Whatever-the-heck-it-was, etc.)?
     
  12. JackHorzempa

    JackHorzempa Poo-Bah (5,283) Dec 15, 2005 Pennsylvania
    Society

    [​IMG]
     
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  13. Todd

    Todd Founder (6,558) Aug 23, 1996 California
    Staff Moderator Fest Crew Society Trader

    Don't worry, everyone! CANarchy, and brands, are still "small," "independent," and "craft."

    From the Brewers Association earlier this morning:

    The Brewers Association (BA) is aware of CANarchy Craft Brewery Collective’s pending sale to Monster Beverage. Based on our current information, CANarchy meets the Brewers Association’s craft brewer definition under the ownership of Monster Energy as presently constituted. In this instance, Monster is not a beverage alcohol industry member, so this new ownership structure does not affect CANarchy's independence in regard to the beverage alcohol industry. The Brewers Association defines small and independent craft brewers as:
    • Small: Annual production of 6 million barrels of beer or less (approximately 3 percent of U.S. annual sales). Beer production is attributed to a brewer according to rules of alternating proprietorships.
    • Independent: Less than 25 percent of the craft brewery is owned or controlled (or equivalent economic interest) by a beverage alcohol industry member that is not itself a craft brewer.
    • Brewer: Has a TTB Brewer’s Notice and makes beer.
    ###
     
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  14. zid

    zid Poo-Bah (1,669) Feb 15, 2010 New York
    Society Trader

    That's the best use of quotation marks for sarcasm that I've seen in a while. :wink::grin:
     
  15. StoutSnob40

    StoutSnob40 Poo-Bah (2,881) Jan 4, 2013 California
    Society Trader

    Great news for any motocross riders named Dale.. immediate sponsorship opportunity coming your way.
     
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  16. guinness77

    guinness77 Poo-Bah (2,013) Jan 6, 2014 New York
    Society

    When does Brawndo get released??

    sheesh
     
  17. Leighton_

    Leighton_ Initiate (41) Jan 31, 2021 Minnesota
    Trader

    I can promise you that's not how it works. Your local retailer is likely working on a system based on categorized shelving. So when a malt beverage shows up it's most likely displacing other less successful malt beverages. If malt beverages were to gain significant market share your retailer might shift some shelving from beer towards malt beverages but as it is the malt beverage industry is full of old stagnant products that aren't gaining market share. I'd be more worried that the ol Seagram's escapes, Jack Daniels coolers or Smirnoff Ice is going to take the boot than anything beer related.
     
  18. JackHorzempa

    JackHorzempa Poo-Bah (5,283) Dec 15, 2005 Pennsylvania
    Society

    Not until 2505. You will need to obtain your electrolytes elsewhere.

    [​IMG]
     
  19. JackHorzempa

    JackHorzempa Poo-Bah (5,283) Dec 15, 2005 Pennsylvania
    Society

    Yup, I have already seen that in spades as regards Hard Seltzers.

    Shelves (and floor space) that once had beers are now Hard Seltzers.

    Oh, and refrigerator space too.

    Cheers!
     
  20. guinness77

    guinness77 Poo-Bah (2,013) Jan 6, 2014 New York
    Society

    I don’t know…2505 is approaching more quickly than any of us could have expected.
     
  21. JackHorzempa

    JackHorzempa Poo-Bah (5,283) Dec 15, 2005 Pennsylvania
    Society

    We just have to survive the pandemic(s) and then we have:

    [​IMG]
     
  22. djben

    djben Initiate (38) Sep 4, 2013 Florida

    I have to see if I can dig up the comments where I mentioned this was their five-year plan... do all the ugly work of buying independent small-to-medium-size privately owned businesses, streamline their operations/financials/ownership, then put them all in a nice package for a large spirits/beverage to acquire.

    It's definitely been fun watching craft in the US mature over the last 20 years :slight_smile:
     
  23. REVZEB

    REVZEB Poo-Bah (10,335) Mar 28, 2013 Illinois
    Society

    Wow that's a monster of a deal! :sunglasses:
     
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  24. unlikelyspiderperson

    unlikelyspiderperson Poo-Bah (1,936) Mar 12, 2013 California
    Society Trader

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  25. Leighton_

    Leighton_ Initiate (41) Jan 31, 2021 Minnesota
    Trader

    Hard seltzers were the perfect storm
    The craft industry had extended itself well beyond saturation, the entire beer industry was declining, lifestyle branding and marketing directed at 'healthy-living' was reaching it's apex and beverage companies finally put 2+2 together on avoiding liquor excise taxes by using malt liquor instead of spirits.

    A large reduction in space for craft beer only made sense and truthfully I think it's fantastic that it happened the way it did. Imagine if the craft beer industry had simple been left to marinate at market saturation with no clear competitor to take it's place. We'd likely have seen a race to the bottom with an emphasis on making a cheaper product, more aggressive acquisitions from corporate entities and overall less innovation in the industry.

    This year I'm seeing more BA favorites (ESB, Dark Lager, etc, etc.) than I've ever seen before and I can only guess it's because outside forces thinned the herd and let the best brewers shine more than they could when things were at saturation.
     
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  26. richOutsidePhilly

    richOutsidePhilly Initiate (21) Jan 27, 2021 Pennsylvania

    Maybe where you live, not here. A good arbiter is the local supermarket shelves. Around 8 years ago they started selling beer and it was a revelation. Then, corporate culture worked it's way in. Shelf space was diminished in favor of wine, seltzer, top-sellers, etc. Now, the list of what you don't see stands out: Great Divide, Uinta, Flying Fish, Firestone-Walker, Saranac, Widmer, Knee Deep; I could go on and on.
    This isn't social Darwinism. It's capitalism. Don't want to sound like a bomb-throwing Syndaclist-Anarchist, more like someone who went through 40 years of company takeovers. No big entity ever acquires a smaller entity to make their life better. They usually just fuck it up. Don't believe me? Read Dilbert.
    Hopefully, European imports will still be available. And the local breweries. The old "watch the skies!" is now "stock your cellars".
     
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  27. mikeinportc

    mikeinportc Poo-Bah (1,750) Nov 4, 2015 New York
    Society

    Yeah , the European imports are still there, though most from one obscure , marginal country has mostly disappeared. Good beer, but......*shrug* .
    What's that place called ......:thinking_face::thinking_face::thinking_face: .......
    Oh yeah! - Germany! That's it.
    Not the most popular or well-known , but , odd as it may sound, some really good beer.
     
  28. Leighton_

    Leighton_ Initiate (41) Jan 31, 2021 Minnesota
    Trader

    It's always a race to the bottom with capitalism, it's just a matter of how many turns are on that course and I think seltzers effectively added another lap or two to the saga that is the 21st century craft industry. I could only imagine this would of been worse if corporations didn't have seltzers and other 'lifestyle' beverages to buy into. The acquisitions in the craft industry would of only been quicker and the attempts to price out small brewers more aggressive.

    also being in Minnesota the concept of getting good beer at a grocer or anywhere thats not a liquor store is mind boggling on it's own. In a way we're lucky because liquor stores are that much more popular and it lets us have the freedom to have fun craft beers instead of riding bottom-line pricing on every domestic known to mankind.
     
  29. Resistance88

    Resistance88 Aspirant (225) Apr 9, 2015 California
    Trader

    All this reading you guys tryina make me do...what are you guys a buncha ....... nevermind.
    Why my plants stop growin...
    To Brawndo!!!!!!:joy:
     
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  30. JackHorzempa

    JackHorzempa Poo-Bah (5,283) Dec 15, 2005 Pennsylvania
    Society

    Maybe that is a 'good' thing where you live but not here.

    Have a good evening.
     
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  31. jasonmason

    jasonmason Devotee (497) Oct 6, 2004 California
    Society Trader

    I have seen very few entities release a press release that illustrates better just how entirely out of touch they are with the group they claim to represent.
     
    #31 jasonmason, Jan 14, 2022 at 2:13 AM
    Last edited: Jan 14, 2022 at 2:22 AM
  32. herrburgess

    herrburgess Meyvn (1,139) Nov 4, 2009 South Carolina

    Not Your Father's 4LOKO
     
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  33. unlikelyspiderperson

    unlikelyspiderperson Poo-Bah (1,936) Mar 12, 2013 California
    Society Trader

    *because legal has informed us that we are not allowed to put that many stimulants in a can of alcohol anymore.

    But it's got monkfruit! Ya like monkfruit?
     
  34. beerjerk666

    beerjerk666 Poo-Bah (3,150) Aug 22, 2010 Florida
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  35. bbtkd

    bbtkd Poo-Bah (13,530) Sep 20, 2015 South Dakota
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    Not Your Mother's Yoo-Hoo
     
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  36. EnronCFO

    EnronCFO Zealot (578) Mar 29, 2007 Massachusetts

    It’s behind a paywall, but I believe Brewbound reported that HPS drove the sale, not Fireman. HPS is the lender and they don’t provide cheap debt, so it’s possible Canarchy tripped covenants on its debt and HPS stepped in to force a sale to cover its loans.
     
  37. jesskidden

    jesskidden Poo-Bah (2,359) Aug 10, 2005 New Jersey
    Society Trader

    Well, brewers have known that for decades, back in the 80s when some (Stroh's White Mountain Cooler, AB's Dewey Stevens, H-S's Diamond Island, Heileman's La Croix, Coors' Colorado Chiller, etc) created malt based "coolers" to compete with the popular wine coolers of the period. Even further back, there was Champale and National's Malt Duck.

    And again in the late '90s - 2000s with the popularity of FMB's.
     
  38. Fordcoyote15

    Fordcoyote15 Meyvn (1,068) Nov 19, 2011 Pennsylvania
    Trader

    Bamburana barrel aged monster with cacao nibs in a stovepipe coming right up.
     
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  39. Urk1127

    Urk1127 Poo-Bah (1,936) Jul 2, 2014 New Jersey
    Society Trader

    You would only hope that it stays a joke and they learned from what the original four loko drinks did to people. Not that that stops people from making jagerbombs or vodka redbulls. If you want to erase your mind then try a vodka redbull. You can run a marathon and be stuck on the floor at the same time :joy:
     
  40. rgordon

    rgordon Meyvn (1,192) Apr 26, 2012 North Carolina

    Per Fidy just might be apropos.
     
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