This morning we learned that Ballast Point Brewing was just acquired by Constellation Brands Inc., the maker of Robert Mondavi wines and Svedka vodka. Reports say that Constellation agreed to acquire Ballast Point Brewing and Spirits for $1 billion to add a line of craft beer to its portfolio. The acquisition is expected to be finalized this year and will be financed with cash and debt, according to a statement released by Constellation.
Constellation, which primarily focuses on wine and spirits, found success in the beer business in 2013 when it acquired the rights to sell Corona and Modelo beers in the U.S. This is the company’s first move into the world of craft beer.
Ballast Point Brewing opened in 1996 and today is best known for its Sculpin IPA and Grapefruit Sculpin IPA. The company employs more than 500 employees, producing beer in four facilities in the San Diego area. It distributes beer to over 30 states.
“We started this business nearly 20 years ago with a vision to produce great beer that consumers love and to do it the right way,” Jack White, founder of Ballast Point Brewing & Spirits, said in a press release. “To achieve that vision, we needed to find the right partner. The team at Constellation shares our values, entrepreneurial spirit and passion for beer, and has a proven track record of helping successful premium brands reach the next level of growth and scale.”
Ballast Point expects to sell nearly 4 million cases of beer this year, a 100 percent growth rate over its 2014 sales figures. Net sales are expected to reach $115 million this year. According to Bloomberg Business, Constellation’s stock rose 1.4 percent this morning to $134.01.