Constellation Brands continues its march toward the premium end of the adult beverage market as it has announced they are selling the 23 year old Ballast Point brand to two year old Kings & Convicts Brewing Co.
In October 2015 Ballast Point Brewing of San Diego, California filed the paperwork to start an IPO to take the company public. At that point according to their SEC filing the IPO was valued at $172.5 million. One month later Constellation Brands announced a $1 billion acquisition of Ballast Point brands.
Now four years later Constellation Brands has announced the sale of craft-beer maker Ballast Point to Kings & Convicts Brewing Co. of Chicago, Illinois. The signed agreement includes Ballast Point brand and a number of its associated production facilities and brewpubs, excluding Constellation’s Craft & Specialty operations in Daleville, Virginia.
Update: March 2, 2020 – Constellation Brands today announced that it has completed the sale of Ballast Point to Kings & Convicts Brewing Co. The transaction includes the Ballast Point brand and a number of its associated production facilities and brewpubs, excluding Constellation’s operations facility in Daleville, Virginia.
The Craft Beer Market has Shifted
“We’re excited to welcome the team at Ballast Point into the Kings & Convicts family,” said Brendan Watters, Kings & Convicts’ chief executive officer. “We have long admired the quality and spirit of Ballast Point’s brands and team. Ballast Point’s best-in-class brewing standards will remain unchanged, delivering the same high-quality, award-winning products the company has become known for over the years. Our goal is to leverage Ballast Point’s deep know-how, talented and passionate employee base, and outstanding operating team to grow both Ballast Point and Kings & Convicts together.”
Kings & Convicts Operates a 5,000 Square Foot Brewery
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As part of the transaction, Kings & Convicts will acquire Ballast Point’s four brewpub locations in California, including Downtown Disney/Anaheim, Long Beach, Miramar, and Little Italy, as well as the newest Ballast Point brewpub located in Chicago’s Fulton Market District which opened in May of this year and Ballast Point’s original homebrewing supply and tasting room in San Diego’s Linda Vista neighborhood.
“We look forward to engaging the community and getting a connection back to the local markets through our distributor partners, on and off-premise retailers and our dedicated salesforce ambassadors,” said Chris Bradley, Kings & Convicts’ chief operating officer. “Ballast Point has well-established R&D programs and we want to continue fostering that innovation and experimentation by listening to our consumers and serving specialty and local beers in each market.”
Current volume of Ballast Point is expected to surpass 200,000 barrels in 2019 and is available in all 50 states as well as internationally in 19 countries including South Korea, Sweden, Australia, and New Zealand.
What Did Ballast Point Sell For?
Terms of the transaction were not disclosed. According to a report in Beer Business Daily word on the street is it went cheap. The San Diego Union-Tribune said industry observers estimate the sales price between $75 million to $200 million. We’ll update the story if the numbers are released.
Constellation Brands is a leading international producer of and marketer of beer, wine and spirits with operations in the U.S., Mexico, New Zealand, Italy and Canada. The company’s Constellation Ventures include investments in Catoctin Creek Distilling, Bardstown Bourbon Company, Nelson’s Green Brier Distillery, Real McCoy Spirits Corp. and Copper & Kings American Brandy.
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