Beer Infinity Beer, Brewing & Beyond
| Another week, another buyout, another yawn. Except not this time, because the topline number has startled even cynical old beer writers like me:
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.
A billion here and a billion there and pretty soon you’re talking real money. Some quickie comments as the news comes in.
The Rationale
Ballast Point is one of the strongest brands in the US. There aren’t a ton of top tier brands out there, so it makes sense that Constellation paid premium dollars for it.
The Valuation On the other hand, the brewery only made 115,000 barrels and was only the 31st largest craft brewery in the US last year. Which means Constellation paid super premium dollarsar–far in excess of the current value of the company. (No financials were disclosed on the Lagunitas deal, but reports said Petaluma’s–and C
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Source: Beervana
Read the full article here.
