Maui Brewing’s acquisition of Modern Times featured so many twists and turns that it could one day be optioned by a streaming service. After so many ups and downs — and an auction process that didn’t immediately resolve Modern Times’ ownership quandary — Maui Brewing ended up purchasing the business for $10 million and rolled the company into its Craft ’Ohana platform.
Maui Brewing co-founder Garrett Marrero and former Modern Times CEO Jennifer Briggs shared their experiences on the sale process last month during the Brewbound Live business conference in Santa Monica, California.
Marrero compared the bidding process that included representatives from Brewery X in Anaheim and the founder of Untappd parent company Next Glass, Kurt Bagby Taylor, to an eBay auction.
“Watching it go up to, in the end, $21 million after the debacle at the end of that auction was just like a WTF moment for sure,” he said.
Although Brewery X won the auction, the company didn’t end up going forward with the purchase. When Brewery X backed out, that left Modern Times in a “no man’s land” and “stalled everything,” Briggs said.
“We tried to sell as much beer as possible, but it definitely changed the power dynamics at that moment,” she said.
“Everything that was wrong with Modern Times prior just got exacerbated,” Marrero added. “The access to capital was gone.
“So trying to fulfill orders was impossible,” he continued. “X pulling out — it just gutted them.”
Brewery X’s exit led Maui to reevaluate its own purchase option for Modern Times to ensure that nothing was missed during due diligence, Marrero said. Maui ultimately decided to press forward, but the company is still dealing with the fallout of the auction switcheroo, repairing relationships with wholesalers and reestablishing trust with the Modern Times team.
With Modern Times now in the newly established Craft ’Ohana platform with Maui Brewing, Marrero said the company has the right bridge to the mainland. However, Marrero said he is currently not looking to add to the family “at the moment.” The plan, first, is to ensure Modern Times is on solid ground.
“I’ve fielded countless phone calls from very reputable brands that we all know and love and I’m shocked that they want out in many ways,” he said. “It’s a sign for where the industry is at right now. But I don’t think we’re ready to do that to be completely honest.”
Watch the video above to find out how Marrero plans to preserve and enhance what made Modern Times relevant, what work still needs to be done with the brand’s membership club, whether the company was ever profitable and more.