Following weeks of twists and turns, the future of Point Loma-based Modern Times Beverages has been determined. It was a longer than expected road that involved a receivership auction wherein stalking-horse bidder Maui Brewing Company (MBC) was outbid by a pair of entities, Anaheim’s Brewery X and a group headed by individuals affiliated with Wilmington, North Carolina’s TRU Colors Brewing. The former was named the winner of the auction with a closing bid of $20 million, only to have the latter object to that outcome based on the fact its bid had been $100,000 higher. Following that objection, a judge upheld the auction results, clearing the way for Brewery X, but the company has since elected not to complete the sale process. Now, MBC is back in the top spot to acquire Modern Times as the backup bidder.
“This was an unexpected development in the process. I am looking forward to working with MBC and finalizing the sale process, and transitioning the business,” says Modern Times CEO Jennifer Briggs. The Modern Times team of employees and professional advisors engaged with [Brewery X] representatives in a sprint-like fashion to meet the tight transition timeline for the closing date of July 8, 2022. This last-minute change is abrupt, yet it gives us the opportunity to be even more methodical. It allows MBC the time to finalize their acquisition process per their asset purchase agreement and how it will be additive to our craft-brewing community.”
When the original auction’s outcome was under objection, MBC owner and CEO Garrett Marrero told San Diego Beer News that if there was another opportunity to acquire Modern Times, his company would participate, saying, “In my gut, they’ll hold a new auction and see who emerges from that. We would participate, but only if it’s realistic. We’re not starting at $20 million.”
After being outbid at auction, Marrero was understanding but regretful as he believed his company had what it took to achieve synergy with Modern Times’ staff and usher the company into a new and profitable next chapter. He noted the fact MBC has since-replaced equipment at its Kihei headquarters that could be relocated to Modern Times’ production facility.
Over the past few months, local craft-beer fans have expressed a range of emotions over Modern Times’ would-be owners. When MBC entered its initial bid, the majority of those familiar with the company had positive reactions. Marrero hails from San Diego, has played an integral role to the growth of the industry through his work with fellow brewers and national trade group, the Brewers Association, and has long been a vocal advocate for unity within the craft-beer community. On top of that, his company is well-respected, environmentally responsible, fiscally sound and experiencing impressive growth. The potential of MBC acquiring Modern Times seemed a best-case scenario for an ailing company, leading to not only understanding but anticipation on the part of local beer fans.
According to Modern Times, MBC’s acquisition of the company is expected to close sometime in October. As part of the deal, MBC would gain control of that Point Loma brewery and tasting room as well as Modern Times’ brewery-restaurant in Anaheim, and its tasting rooms in North Park and Encinitas.
“It is incredible to see the continued resilience of our Modern Times employees,” says Briggs, who notified the company’s staff of this development via an all-hands meeting earlier this morning. “We are continuing to sell all of the beer we produce and are very grateful for our distribution partners, loyal drinkers, League embers, and visitors to our taprooms and restaurants.”