Photo: Ballast Point
Four years after acquiring the Ballast Point brand, the Constellation Brands group says goodbye to the beer brand. Read more here.
Corona’s distributor, Constellation Brands, sells Ballast Point, a craft beer from San Diego, California, to Kings & Convicts. This brewery is privately owned and was founded in 2017 in Illinois. Although the transaction price has not yet been disclosed, it is known to be worth less than a billion dollars, the price at which Constellation Brands acquired the brand in 2015.
Ballast Point did not have an easy ride at Constellation Brands. After obtaining the national label, the company reduced the value of the brand twice. That is, 87 million dollars in 2017 and 108 million dollars this year. During the summer it was confirmed that they would close two Ballast Point facilities and abandon plans for a craft brewery in Southern California.
This process is unfortunately the product of the mismanagement of the U.S. craft beer industry. In fact, Constellation’s CEO stated: “Trends in the artisanal beer sector in the United States have changed radically since we acquired Ballast Point.
In addition, the brand appears to have affected Constellation’s performance. According to CB, they expect a slight improvement in trends in margins and depletion after the sale. This should end by February 2020.
However, the Modelo and Corona beers, the company’s flagship brands, continue to grow strongly. The next launch planned for Constellation Brands is Corona Hard Seltzer, which has great potential since Hard Seltzer drinks are a trend in full effervescence.
Don’t drink and drive. Enjoy responsibly.