So long Ballast Point IPO. Corona and Modelo beer brewer Constellation Brands Inc (STZ.N) said it will buy San Diego-based craft beer maker Ballast Point Brewing & Spirits for about $1 billion to compete in the fast-growing craft beer market.
2 thoughts on “Constellation Brands to buy brewer Ballast Point for $1 billion”
A BIllion! For beer? Very surprising to hear such a big number for craft brewery. What kind of revenue multiple do they associate with beer?
Ballast Point will do about $115M this year in sales of beer and distilled spirits. The Craft Brewing Industry contributed $55.7 Billion to the U.S. Economy in 2014 and more than 424,000 jobs. Craft beer sales are growing at a rate of 22% per year. My numbers do not include the big beer industry types like Budweiser, etc.
A BIllion! For beer? Very surprising to hear such a big number for craft brewery. What kind of revenue multiple do they associate with beer?
Ballast Point will do about $115M this year in sales of beer and distilled spirits. The Craft Brewing Industry contributed $55.7 Billion to the U.S. Economy in 2014 and more than 424,000 jobs. Craft beer sales are growing at a rate of 22% per year. My numbers do not include the big beer industry types like Budweiser, etc.