8th Wonder Brewery, Distillery and Cannabis has been acquired by Bayou City Hemp Company, a Houston, Texas-headquartered cannabis company.
Financial details of the deal were not disclosed.
8th Wonder, also based in Houston, has had a working relationship with Bayou City since 2021, partnering on several projects, including a Delta 8 THC non-alcoholic seltzer in 2021, and the launch of 8th Wonder Cannabis, a cannabis cultivation company and dispensary, in 2022.
Together, the companies will continue to produce cannabis products, craft beer and spirits that will be “distributed and sold together in traditional sales channels across the country,” according to a press release. The announced deal follows an agreement between the two companies in May to develop cannabis-infused offerings to sell in bars and restaurants, as well as liquor, convenience and convenience in major Texas markets Dallas, San Antonio, Austin and Houston via Flood Distribution.
A “refreshed and revitalized 8th Wonder” will now “have access to significant capital” from Bayou City, which will be used to expand the brand’s footprint “to compete with national players in craft beer and spirits,” as well as non-alcoholic beer and ready-to-drink, spirits-based canned cocktails (RTDs), the companies wrote in the release.
“Basically, for you, this means you’ll have a front row seat and backstage pass to a groundbreaking good time,” 8th Wonder wrote to fans in an Instagram post announcing the deal. “Expect equipment upgrades, facility improvements, PLENTY of new beverages, and more fun heading your way than you may be ready for.”
Bayou City will benefit from the deal by leveraging 8th Wonder’s “existing distribution network, industry relationships and strong brand equity” to gain shelf placements for the joint company’s projects, including at large retailers such as HEB, Kroger, Walmart, Total Wine and Specs, according to the release.
“Our commitment to provide quality products and trusted brands to consumers is strengthened with 8th Wonder, who has been a Texas staple in craft beer and spirits for over a decade,” Bayou City co-founder and CEO Benjamin Meggs said in the release. “We look forward to growing market share and distribution to the entire portfolio of products through expanded resources and combined expertise.
“This is not merely an acquisition; it is a bold declaration of our intent to lead and innovate in the heart of Texas,” he continued.
Continuing as CEO, Meggs will lead a combined executive team, which includes 8th Wonder brewmaster and co-founder Dr. Aaron Corsi as chief operating officer and 8th Wonder president and co-founder Ryan Soroka as chief brand and marketing officer.
The rest of Bayou City’s executive team will remain the same, with co-founder Jeromy Sherman as chief business officer; co-founder Karen Trotter as chief financial officer; Joel Canada as chief revenue officer; and Stephen Horton as chief innovation officer.
No other staff members will be impacted, “but expect to see an expanded team in all departments,” a spokesperson told Brewbound.
“From day one at 8th Wonder, our goal was to build a hundred-year company,” Soroka said in the release. “This transaction will provide the leadership and resources needed to achieve that dream.”
Bayou City Hemp was founded in 2019 as a vertically integrated cannabis extraction and processing company, creating a range of products including edibles, vapes, additives and non-alcoholic seltzers. Since then, the company launched its own CBD botanical brand Mixer Elixir, and cannabis lifestyle brand, Third Coast Blends. In 2020 it added a third brand to its portfolio with the acquisition of Leaflife Wellness, a luxury CBD beauty brand.
Founded in 2011, 8th Wonder has rapidly expanded its product offerings beyond beer in the past few years, including launching 8th Wonder Distillery in 2018. With that expansion, the company’s beer production declined significantly from more than 11,000 barrels in 2017 to nearly 4,500 barrels in 2020, according to the Brewers Association (BA). That annual production rose +89% in 2021, to 8,488 barrels, but declined again in 2022, to 7,000 barrels (-18% year-over-year).