News Alert: Constellation Reaches Deal To Sell Ballast PointDecember 3, 2019
Constellation Brands has agreed to sell craft brewer Ballast Point to Chicago’s Kings & Convicts Brewing Co. for an undisclosed sum. The deal is expected to close by the end of Constellation’s 2020 fiscal year and will also include Ballast Point’s brewpubs and production facilities. In addition, Kings and Convicts will retain Ballast Point’s existing employees. The agreement will not include Constellation’s Craft & Specialty operations in Daleville, Virginia. Ballast Point’s production will be around 200,000 barrels this year, Kings & Convicts said.
“Trends in the U.S. craft beer segment have shifted dramatically since our acquisition of Ballast Point,” said Bill Newlands, Constellation Brands president and CEO. “This decision allows Constellation to focus more fully on maximizing growth for our high-performing import portoflio and upcoming new product introductions.” Constellation Brands purchased Ballast Point for roughly $1 billion in 2015 and oversaw a packaging redesign and price drop in 2017 amid increasingly challenging conditions for large craft breweries.—Shane EnglishSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.