SweetWater to Expand Distribution to Colorado in February

Nearly two months after the close of its sale to Canadian cannabis company Aphria, Atlanta-headquartered SweetWater Brewing said it will expand distribution to Colorado, the first state to legalize cannabis for recreational use.

“Colorado has always held a special place in my heart,” SweetWater founder and CEO Freddy Bensch said in a press release. “It’s where I first learned to brew beer and where I now live half of the year in Telluride. Because of my connection with the state, SweetWater has always had a Colorado vibe, from our West Coast-style beers to our 420-friendly lifestyle and passion for the great outdoors.”

SweetWater products will roll out on February 1 through partnerships with Eagle Rock Distributing Company of Colorado, Central Distributing Company, Quality Brands of the Rockies and B&K Distributing. Eagle Rock, which was a wholly owned Anheuser-Busch InBev distributor that A-B sold to Norcross, Georgia-headquartered Eagle Rock, will sell the bulk of SweetWater’s volume in Colorado, as its branches reach 75% of the state.

“With roots in Atlanta, we’re very familiar with SweetWater and we’re honored that they’ve chosen us to handle their distribution out in the Centennial State,” Eagle Rock Distributing Company of Colorado president Mike Economos said in the release. “We’ve seen them grow from a small local brewery to a highly successful brand with a team of fun-loving people passionate about both craft beer and the environment.”

SweetWater’s Colorado launch will include flagship 420 Extra Pale Ale; High Light Lo-Cal Easy IPA; G13 IPA, brewed to mimic the aromas of the G13 cannabis strain; and a new year-round offering, H.A.Z.Y. IPA, a double dry hopped hazy IPA.

A SweetWater spokesperson confirmed that the brewery will launch its second hard seltzer brand, Oasis, described as “super-premium” and “a step up from other hard seltzers in the market.” Oasis will contain vitamin C derived from pomegranate and electrolytes from the addition of potassium salt. The hard seltzer will contain 100 calories, 1 gram of carbohydrates and 1 gram of sugar and will be available in “dual-fruit flavors,” the spokesperson said.

Last year, SweetWater released Hydroponics Seltzer, a 5% ABV, 100-calorie seltzer infused with terpenes.

Colorado marks SweetWater’s 27th state and its western-most market. The brewery introduced itself to Colorado drinkers four years ago when it began an ongoing sponsorship of Telluride Ski Resort.

In November 2020, SweetWater, which was the 14th largest craft brewer by volume in the U.S. in 2019, announced it would be acquired by Aphria, the Canadian maker of adult-use cannabis brands Solei, Riff, Good Supply and Broken Coast, for $300 million in cash and stock.

During a press conference to announce the deal, Aphria CEO Irwin D. Simon said Aphria’s long-term goals for the acquisition included using SweetWater’s network and cannabis-friendly brand to introduce American consumers to Aphria’s brands if and when cannabis becomes legal at the federal level; introducing Canadian consumers to SweetWater’s beer; and using SweetWater’s brewing bonafides to develop cannabis beverages.

SweetWater finished 2020 with a 3.5% increase in off-premise dollar sales, to $67.2 million, through December 27, making it the 25th largest beer category vendor, according to market research firm IRI. Flagship 420 Extra Pale Ale’s off-premise dollar sales declined 2.1%, to $21.1 million.