Ready-to-drink (RTD) mimosa and sangria producer Ohza has been acquired by FX Matt, the companies announced today.
The acquisition brings a wine-based offering to FX Matt’s growing stable of RTD and beyond beer brands, which includes McKenzie’s Hard Cider, ‘Merican Mule spirits-based RTDs and Right Coast Spirits vodka- and tequila-based RTDs.
Ohza’a portfolio includes 12 oz. can 4-packs in the following wine cocktails: Fizzy Red Sangria, Fizzy White Sangria, Classic Mimosa, Classic Bellini, Pineapple Mimosa, Mango Mimosa, Cranberry Mimosa and Grapefruit Mimosa.
FX Matt “is set to expand distribution significantly” for Ohza, according to the press release. However, immediately post acquisition, FX Matt plans to focus on Ohza’s flagships, Classic Mimosa and Fizzy Red Sangria, the company told wholesalers.
Ryan Ayotte founded Cambridge, Massachusetts-based Ohza in 2019. Because of expanded direct-to-consumer shipping privileges for wine, the brand has been able to sell to consumers in every state except Alabama, Arkansas, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Mississippi, North Dakota, South Dakota, Utah and Wisconsin, according to its website.
In addition to its DTC channel, Ohza also has chain placements in several national off-premise retailers, including Walmart, Whole Foods, Safeway, BevMo!, Gopuff and Circle K, according to the release.
Ohza brought pop star Joe Jonas on as an investor and co-founder in 2022. Jonas, one-third of the Jonas Brothers, makes in-store appearances and occasionally drinks the brand on stage during concerts, according to Ohza’s Instagram account.
Wine-based RTDs are a small but growing segment of the fourth category, which includes spirits-based RTDs, hard seltzers and flavored malt beverages (FMB). Combined, fourth category dollar sales reached $13.1 billion in the 52-week period ending July 13 at grocery, mass retail, convenience and liquor stores tracked by market research firm NIQ.
Dollar sales of wine-based RTDs increased +11%, to $1.2 billion, in the 52-week period ending July 13, according to NIQ. Wine-based RTDs are the second smallest segment, larger than only ready-to-serve offerings, which are large format packages with several portions of pre-mixed cocktails.
FX Matt, which produces the Saranac and Utica Club beer brands, has become an active acquirer across beverage-alcohol. In May 2023, it acquired Frederick, Maryland-based Flying Dog Brewery. In April 2024, Right Coast Spirits – a joint venture between FX Matt and Mass. Bay Brewing-owned Harpoon Brewery – acquired ‘Merican Mule.
In 2021, FX Matt completed a three-year, nearly $35 million brewery modernization project that doubled its capacity and its beyond beer capabilities. The project was funded by a sale of a 20% stake in the business to the Brooklyn Brewery.
Its beer production ranks FX Matt as the 13th largest craft brewery in the country by volume, according to the Brewers Association (BA). In 2023, volume declined -10%, to 219,653 barrels, according to the BA’s May/June 2024 issue of the New Brewer.