![]() Rob Sands, chief executive of Constellation, said Ballast Point has been a key driver of craft beer sales in the U.S. We can focus on the beer and let them focus on the business.” This allows us to focus on what we do best, rather than be a public company. “But we talked to the Constellation folks and we thought this was a better option for us. “The IPO was a great option for us,” said Jack White, Ballast Point’s founder. ![]() Recently, the brewer quashed ITS IPO plans after filing papers last month for an initial public offering.Ĭonstellation, which owns brands such as Robert Mondavi Winery and imports Mexican beers such as Corona, Modelo Especial and Pacifico, will give Ballast Point access to a wider distribution network and stronger buying power for ingredients and equipment. With Constellation, Ballast Point gets a huge infusion of cash for expansion. The brand is known for its American India pale ales, which have emerged as the antithesis of the pale, watery lagers that have come to define giants like Budweiser.īallast Point produces more than 15 kinds of beer year-round, along with seasonal beers and craft spirits, best known for its Sculpin IPA. I guarantee going into 2016 it’s something we’ll see more frequently.”īallast Point started selling beer commercially in 1996 and has grown into the 31st-largest craft brewer in the country, according to the Brewer’s Assn. It’s the reason why the industry’s largest macro breweries. “Per capita spending on alcohol is stagnant in the U.S.,” said Nick Petrillo, an analyst for IbisWorld. Retail sales of craft beer in 2014 totaled $19.6 billion, up from $8.8 billion in 2010, according to the Brewers Assn. Craft’s market share for beer in the U.S. That was perhaps the key motivation behind Anheuser-Busch InBev’s agreement last month to buy rival SABMiller in a mega-deal valued at $110 billion.Ĭraft beer, however, is bucking the trend. The barrage of craft-beer deals reflects a massive shift toward consolidation in the alcohol industry this year as beer behemoths try to capture market share as overall sales growth stagnates. “I can’t believe it either,” he said in a phone interview Monday. ![]() Are you freaking kidding me?’” said Kevin Hopkins, president of the San Diego Brewers Guild and an employee of Vista Mother Earth Brewing.Įven Ballast Point’s chief commercial officer, Earl Kight, admitted surprise when confronted with the size of the deal. “The very first guy to walk into my office this morning, the first thing he says to me is, ‘$1 billion. The deal certainly had jaws dropping in San Diego, one of America’s premier beer towns, home also to Stone, Green Flash and other top-notch beer makers. Based on the Ballast deal, price tags must have been high - though none of the companies will say just how much. of Petaluma, Calif., MillerCoors acquired San Diego’s Saint Archer Brewing Co., and Anheuser-Busch InBev’s bought Golden Road Brewing of Los Angeles. Heineken bought a 50% stake in Lagunitas Brewing Co. ![]() So the big beer makers are bidding up prices. Barrel shipments for craft brewers rose almost 18% last year, with higher rates to come, according to the Brewers Assn. nearly flat as the Buds, Millers and Coors of the world lose share and fall out of favor. The whole craft beer industry - not just Ballast - is on a tear, even with overall beer growth in the U.S. ![]()
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