Craft beer is getting awfully serious for what was supposed to be the irreverent, dressed-down younger sibling of industrial macro beer.
Just last week, San Diego-based brewer and distiller Ballast Point sold to Corona brewer and distributor Constellation Brands STZ, +1.54% for $1 billion. That’s roughly $8,300 for each of the 123,000 barrels of Sculpin IPA, Grunion Pale Ale and Victory at Sea Imperial Porter in the roughly 26 states in Ballast Point’s distribution radius.
Not bad for a brewery that produced just 11,293 barrels as recently as 2009, but recent growth into a 107,000-square-foot brewery had Ballast Point expanding its reach and mulling a public share offering. It went public, all right, but with a partner that would have been out of the beer business after Anheuser-Busch InBev’s BUD, $20.1 billion purchase of Grupo Modelo in 2013 if the Department of Justice hadn’t stepped in. Constellation says it will keep Ballast Point running as an independent entity.
Read full article: MarketWatch