By Colin Kellaher
Monster Beverage Corp. on Thursday said it is entering the alcoholic-beverage sector with a deal to buy craft-beer and hard-seltzer company CANarchy Craft Brewery Collective LLC for $330 million in cash.
Monster, a Corona, Calif., beverage maker best known for its namesake energy drinks, said the acquisition includes the Cigar City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters and Wasatch brands but excludes CANarchy's stand-alone restaurants.
Monster's deal comes as beverage companies across the spectrum move into in new categories in a bid to spur growth.
Coca-Cola Co., which last year pulled the plug on an energy drink it had hoped would compete with Monster, last week said it struck a deal with Corona beer brewer Constellation Brands Inc. to launch cocktails based on its Fresca soda brand. Rival PepsiCo Inc. and Samuel Adams brewer Boston Beer Co. are set to roll out an alcoholic version of the Mountain Dew soft drink.
Monster said it expects to complete the transaction during the first calendar quarter, adding that the organizational structure for energy drinks business will remain unchanged, and that CANarchy will function independently, retaining its own organizational structure and team.
Write to Colin Kellaher at firstname.lastname@example.org
Corrections and Amplifications
This article was corrected at 8:56 a.m. ET because the word quarter was omitted in the last paragraph. Monster said it expects to complete the transaction during the first calendar quarter.
(END) Dow Jones Newswires
January 13, 2022 08:36 ET (13:36 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.