It’s been a “tale of two cities” for San Diego-based Modern Times Beer and Kihei, Hawaii’s Maui Brewing.
Modern Times Beer has been weathering an economic storm brought on by rapid expansion that ran into a craft beer slowdown and a global pandemic.
On February 14 the brewery announced that it would be closing a number of its locations citing the pandemic and the “global declines in the craft beer industry,” and that they were doing what they can to stay afloat.
And now their lender (in this case a bank) is auctioning off the once high flying company.
On the other hand Maui Brewing couldn’t be hotter.
Despite shipment growth of 17% through April, the company is still under-producing based on customer demand with one estimate of a minimum additional 15% volume growth left on the table due to labor and supply shortages. Demand for the company flagships Bikini Blonde Lager and POG Hard Seltzer, have surged 50% year-to-date while suffering from widespread out-of-stocks at wholesale and retail levels.
Given its blistering pace to start 2022, on May 25 Maui Brewing Company (MBC) confirmed its bid to acquire San Diego, California based Modern Times brewery.
And while San Diego is crowded market for craft breweries, southern California is appealing to Maui given its wholesale network synergies and the fact that it’s the Hawaiian brewery’s 2nd largest market on the mainland as well as the hometown of MBC’s Co-Founder and CEO, Garrett Marrero.
”While this is just the first step in a long process, we believe in the Modern Times brand and feel it provides a tremendous opportunity for us,” said Marrero. “They have an amazing, dedicated team and we hope to contribute to the next stage in their journey as a craft brewery.”
“The opportunity would significantly strengthen Modern Times and best position it for a long and prosperous future, adding the right resources in place for it to continue its mission,” said in its press release. “The potential acquisition would have no bearing on operations at the Kihei facility or Maui’s current mainland operations.”
(All image credits: Maui Brewing / Modern Times Beer)