The Oskar Blues-rooted craft brewing rollup, CANarchy Craft Brewery Collective, recently added another beer brand. Deep Ellum Brewing Co. is the latest craft brewery to join the the collective. For Deep Ellum, a craft brewery with rough edges and deep roots in the Deep Ellum neighborhood of Dallas, the move to join will immediately provide resources for increased production and distribution.
Founded in 2011 by John Reardon, Deep Ellum Brewing quickly grew to become the third largest independent craft brewery in Texas, led by its flagship brews, Dallas Blonde and Deep Ellum IPA. In 2017, Deep Ellum grew 37 percent to produce more than 45,000 bbls in Texas only, with the vast majority being consumed within 20 miles of the brewery.
“It’s been a hell of a ride for all of us at Deep Ellum, and I believe this is just the beginning,” said John Reardon. ”We’ve been looking for the right partner to grow the Deep Ellum brand, and I believe we’ve found that with CANarchy. They’re a group of like-minded people that have not conformed to the status-quo and have hit critical mass on the path of coming together and remaining independent. We’re all in.”
CANarchy provides a platform from which rapidly growing craft breweries seeking high level resources can expand and compete in the increasingly competitive craft beer segment, while maintaining independence. The platform is driven by individual brewery culture, giving brewers control of their businesses and brands, while providing resources and support to scale their respective operations.
“Deep Ellum Brewing has created a strong community, and now they’re facing next-level challenges that we’ve seen before. Within CANarchy, we can solve those problems in our own way,” said Joey Redner, founder of Cigar City Brewing, who joined CANarchy in June of 2016.
After immediately addressing capacity issues, CANarchy was able to assist Cigar City Brewing to expand distribution and increase shipments 43 percent from 65,000 bbls to 92,000 bbls in 2017.
“CANarchy’s culture thrives on collaboration among craft breweries blazing their own path and doing things their own way. John and the Deep Ellum crew light the fire of craft beer in DFW and will bring that same fire to our collective,” Dale Katechis, soul founder of Oskar Blues, said about the new partnership.
“During my time at the University of Colorado I specifically remember my first can of Dale’s Pale Ale, and that experience is part of the reason I’m in this business. Joining a collective of such irreverent and disruptive founders and leaders is exactly what Deep Ellum has been looking for,” said John Reardon.
Deep Ellum is currently undergoing a large expansion, including a 60-bbl brewhouse at the company’s primary facility that is expected to come online within the next few months. The brewery is operating at maximum capacity and is projecting 55,000 bbls of production in 2018. Deep Ellum is also constructing a taproom in Fort Worth, Texas, that will incorporate a 5-bbl brewhouse and retail space that is scheduled to open in late fall of 2018.
CANarchy was recently ranked No. 9 on the Brewers Association’s list of the 2017 Top 50 U.S. Craft Brewers as ranked by sales volume. The portfolio includes Oskar Blues Brewery, Perrin Brewing Co., Cigar City Brewing, Squatters Craft Beer and Wasatch Brewery. The collective is the No. 1 provider of American craft beer in a can and has driven Cigar City Brewing’s Jai Alai IPA and Oskar Blues’ Dale’s Pale Ale to the No. 1 and No. 2 sold craft can six packs in U.S. Grocery.
Terms of the transaction are not disclosed.