DALLAS — Dallas' Deep Ellum Brewing Co. has been acquired by the Monster Beverage Corporation as a part of a larger transaction, the California-based company announced in a press release on Thursday.
For the company behind Monster Energy, the move marks its first-ever endeavor into the alcoholic beverage sector. The corporation entered into a definitive agreement on Thursday 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 hit the market during an early 2010s regional rush, is one of the brands within the CANarchy portfolio that Monster has acquired. The transaction does not include CANarchy’s stand-alone restaurants.
Along with Deep Ellum, the transaction will also move the following brands under Monster's umbrella:
- Cigar City (Jai Alai IPA and Florida Man IPA)
- Oskar Blues (Dale’s Pale Ale and Wild Basin Hard Seltzer)
- Perrin Brewing (Black Ale)
- Squatters (Hop Rising Double IPA and Juicy IPA)
- Wasatch (Apricot Hefeweizen)
The deal is expected to close in the first calendar quarter of 2022 and is subject to the usual customary closing conditions, including regulatory approvals. Upon approval, CANarchy will function independently and retain its own organizational structure and team, according to a release from Monster.
"This transaction provides us with a springboard from which to enter the alcoholic beverage sector," Monster’s vice chairman and co-chief executive officer Hilton Schlosberg said in a statement announcing the move. "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."
CANarchy’s Chief Executive Officer Tony Short said his team is "thrilled" to be a part of Monster.
"We look forward to capitalizing on the combined expertise of Monster and CANarchy to further strengthen our current alcoholic product offerings, expand our product portfolio to meet the ever-changing needs of our customers and to grow our business," Short said in a statement.
Founded in 2015, CANarchy provides craft beverages throughout the United States as well as 20 other countries and U.S. territories.
Deep Ellum Brewing Co.'s headquarters and taproom are located at 2823 St. Louis St. on the edge of the Deep Ellum entertainment district for which it was named.The craft brewery produces a number of popular regional beers, including its Dallas Blonde, Deep Ellum IPA and DTX Golden Ale brews. The company also produces its Blind Lemon line of flavored hard seltzers.
In 2020, Deep Ellum Brewing Co. founder Reardon, who initially stayed on board as a minority owner following his company's sale, filed a lawsuit alleging that CANarchy hadn't fulfilled all of its agreed-upon payments to him as part of the deal that saw the Dallas brewery change hands. Shortly after the lawsuit was filed, Reardon shared on social media that he was no longer employed by the company he founded.
In 2018, shortly after that initial sale, Reardon launched a new company called Deep Ellum Distillery. This new company focuses on spirits including vodka, various flavored vodkas, whiskey and small-batch bourbon. In 2021, the brand also began brewing its own beers.
WFAA has reached out to representatives with Deep Ellum Brewing Co. for additional details about the transaction and what it means for the brand's production, its distribution and its roster of beers and seltzers. We will update this story if and when those details become available.