Monster Beverage Corporation is closing the brewery and taproom of Deep Ellum Brewing Co. and moving production elsewhere.
The production of Deep Ellum will reportedly be undertaken by other Monster brewing assets. A spokesperson for Deep Ellum said the brand's beers will “remain available throughout Texas... for many years to come”.
“After 12+ amazing years of brewing and serving our beers in Deep Ellum, we've made the difficult decision to close our taproom and brewhouse,” the Dallas, Texas-based brewery posted on social media yesterday (30 May).
Just Drinks has contacted Monster for more information.
Monster acquired Deep Ellum Brewing Co. when it made its entrance into the alcohol category in 2022, with the $330m acquisition of US craft brewer and seltzer producer Canarchy.
That deal saw Monster bring Canarchy’s Cigar City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters and Wasatch beer brands into its portfolio. In 2020, Canarchy was the US’s 15th-largest brewery by volume.
Canarchy bought the Deep Ellum Brewing Co. in 2018 from its founder, John Reardon. He established the brewery and tap room in 2011.
In May, Monster Beverage revealed current co-CEO Rodney Sacks would be reducing his day-to-day responsibilities at the energy drink company from next year.
The group said Sacks will continue to “manage certain areas of the company’s business for which he has always been responsible”. Current co-CEO Hilton Schlosberg, who has been serving in this role with Sacks since 2021, will become the sole chief executive, while Sacks remains chairman.
In the company’s opening quarter of 2024, net sales increased 11.8% to $1.9bn, with its energy drinks segment accounting for $1.73bn of that figure. Gross profit as a percentage of net sales for the 2024 first quarter was 54.1%, compared with 52.8% in the 2023 first quarter.
Operating income was up from $485m last year to $542 this year. Meanwhile, net income for the first quarter increased 11.2% to $442m, from $397m in the opening three months of 2023.
Schlosberg said: “We continue to see growth in the energy drink market globally. In the US, energy is the only segment of the beverage category currently showing unit growth.”
