Leading alcoholic drinks firm Costellation Brands is looking to expand in the fast-growing craft beer market by announcing it will buy Ballast Point Brewing & Spirits for $1 billion.
Ballast Point is a San Diego based company with 500 employees producing more than 40 different types of beer, led by its Sculpin IPA and Grapefruit Sculpin IPA brands, in addition to various labels of spirits.
The partnership with Ballast Point provides a high-growth premium platform that will enable Constellation to compete in the fast-growing craft beer segment, further strengthening its position in the highest end of the US beer market, the company said.
“We believe in the vision that Jack and his team have created and we’re excited to welcome Ballast Point, one of the most respected craft brewers in the country, to the Constellation Brands family”, said Constellation Brands CEO Rob Sands. “Along with imports, craft beer is a key driver of growth and premiumization within the beer industry, with craft doubling its share of the U.S. beer market in the last five years. Ballast Point has certainly been a key driver of that growth. Their business philosophy and entrepreneurial spirit perfectly align with our culture and we look forward to strengthening our position in the high-end beer segment with what is arguably the most premium major brand in the entire craft beer business”.
The deal, which will see Ballast Point continuing to operate as a stand alone company, is expected to close at the end of this year.
Source: Constellation Brands