Monster Beverage’s recent moves to lay off brewery staff and consolidate its craft beer operations have drawn attention from across the industry.
The beverage giant originally made its name in the energy drinks category, but in January 2022 it acquired CANarchy’s craft beer platform in a US$330 million deal, marking its first foray into alcoholic beverages. Ta.
Despite the promise the category has shown over the years, Monster has reportedly laid off more than a dozen staff members at its Cigar City Brewery, just two years after taking ownership of the business. It is being
According to Brewbound, the Florida-based craft brewery’s move to liquidate 12 positions coincides with the site’s current transformation into a cross-category innovation center, which already includes Oskar Blues Brewery. This follows the closure of the company and the dismissal of its brewer. Texas taproom late last year.
As part of the initial deal, Monster acquired ownership of CANarchy’s brewing brands, including Cigar City, Oscar Blues, Deep Ellum, Perrin Brewing, Wasatch Brewing, Squatters, and Wild Basin Hard Seltzer. It was included.
However, Brewbound explained how Monster on February 9th fired Cigar City’s first brewmaster Wayne Wambles, who was scheduled to celebrate Cigar City’s 16th anniversary in early March. According to her LinkedIn profile, Wambles is currently looking for a new job.
This comes on the heels of Monster closing its Oskar Blues brewery and taproom in Austin, Texas, last November and moving production to other Monster-owned brewing facilities, with the industry expected to see further consolidation. I am bracing myself for news of layoffs. However, reports have dispelled concerns, with news circulating that employees at other Monster-owned craft breweries will not be affected.
Its flagship Jai Alai IPA saw dollar sales at non-trade retailers increase by +1.1% to US$39.55 million in the 52 weeks ending February 25, according to market research firm Sarcana. Meanwhile, Jai Alai trading volume decreased by -1.3% over the same period.
According to reports, Cigar City Brewery’s Tampa, Florida, facility will transition to a research and development hub for beer, flavored malt beverages (FMB), and spirits, while all Cigar City Beer operations will remain with the company at its Oskar Boulevard, North Carolina, facility. It has been confirmed that it will be produced at Bruce Brewery. The Spruce Street brewery and taproom in Cigar City, the downtown taproom near Amalie Arena, and the Tampa International Airport will remain open, according to reports.
Looking at the numbers, Circana’s study shows how jai alai recorded declines in both dollars (-2.9%) and volume (-3.5%) from the beginning of the year to February 25th. Outlined in the results.
Earlier this year, Monster Beverage Company CEOs Hilton Schlossberg and Rodney Sachs announced that the company’s craft beer and hard seltzer business (formerly known as CANarchy Craft Brewery Collective and now (renamed Monster Brewing Company) foreshadowed what was to come.
For example, in Monster’s late February results, the company reported a US$39.9 million impairment charge related to its alcohol business, which it attributed to “ongoing challenges in the craft beer and seltzer categories.”
Nevertheless, Monster’s alcohol business, which includes the company’s brand The Beast Unleashed and its craft beer brands, posted a 30.6% increase in net sales to $35.2 million in the fourth quarter, according to its fourth quarter financial report. This was an increase from USD 26.9 million in the fourth quarter of 2022.
The Circana market study also highlights how off-trade sales have suffered, with dollar sales for the former CANarchy portfolio in multi-store grocery, mass merchandisers and convenience stores dropping -10.3% in the first two months of 2024. He pointed out that the price decreased to US$12.5. a million.
In comparison to Monster Brewing, which Circana reports separately, Brewbound outlined that Monster Brewing still recorded +475.6% dollar sales growth in roughly the same period of time as The Beast Unleashed’s launch. Additionally, Monster’s non-CANarchy brands generated US$16.23 million in year-to-date sales through February 25th. Following The Beast Unleashed, Monster further expanded its alcohol offerings, launching Nasty Beast in early 2024, but its focus on beer brewing remains quiet.
Despite the focus on other categories, the craft beer industry’s reputation for quality appears to be holding up. After all, last September, Cigar City Brewing’s Hunapoo’s Imperial Stout was named one of the 10 highest-rated beers in the United States, giving hope for the future of the company’s craft beer sector and the company’s brought beer drinkers’ admiration for the brands under its jurisdiction.
