Craft Brewing companies are getting into the realm of technology company valuations. After a series of buyouts and equity sales in the past 12 months, this has to be the biggest purchase to date. Constellations Brands has bought one of the fastest growing craft breweries in the nation, Ballast Point of San Diego, California for $1 Billion.
Constellation Brands is one of the largest beverage companies in the world alongside AB InBev/SABMiller. Constellation Brands owns Corona, Modelo, Pacifico and others. Not to mention innumerable wines and spirits.
The brewery employs 415 people and distributes to Australia and Japan. According to the Wall Street Journal Ballast Point sales should exceed $115million. Recently, Ballast Point Brewery decided to go public with an IPO. This move grew speculation that it might go public. Come to find out, it was happening. By going public the brewery was expected to raise about $175million.
Ballast Point Brewing is one in a number of recent sales that are reflecting a changing of the guard in the craft beer business. With over 4,000 independent craft breweries in the US, there is certainly no dearth of small neighborhood breweries to sit down at. Buyouts will/are just the way the craft beer world is evolving.