Constellation Brands to Acquire Ballast Point Brewing & Spirits

So, who's getting acquired on Tuesday?

 

lagunitas and now ballast... fck....

 

That is a great point and I hope that is does. Here's to hoping!

 

AMEN to that!!

 

My guess would be that they are attractive to Constellation because of their spirits portfolio

 

So if Ballast is worth 1 billion, what would Dogfish or Bells or Stone go for?

 

How long until all the beer tastes the same again?

 

Its not that simple. Constellation Brands (owns import and production rights to Corona, Modelo) is essentially tied at the hip to Ab-Inbev. After all, Ab-Inbev bought the Modelo group in 2013:

http://www.fool.com/investing/general/2013/06/05/a-b-inbev-completes-modelo-acquisition.aspx

Now, don't forget that AB-Inbev is also acquiring SAB Miller right now. So that one company (owner of Budweiser, the Modelo Group, SAB-Miller brands globally) will control about 1/3 of the global beer market.

Some people don't care, but some people do care about this, as the consolidation in the past 18-24 months alone has been staggering. No matter how you slice it, a lot of the hard work over the past 30 years in craft beer to build an independent component of the beer industry has been rapidly consolidated - even at the macro scale. The implications of this could be huge.

 

I have loved Ballast Point beer and will continue to love Ballast Point beer. It's a small business that some people started almost 20 years ago that is now one of the largest brewers on west coast, that's a huge accomplishment. Being lead by a larger company like that gives Ballast Point a chance to expand further than they already have, and become available nearly everywhere, which is awesome. Not to mention, now they can possibly ramp up production of their whiskys... so good, but so hard to find.

Now, if I got out and buy a 6 pack of Sculpin in 8 months and it tastes like ass, well then I won't be buying it anymore. It honestly makes no sense to me that people will boycott a brewery based on business cycles they don't understand. I can name quite a few breweries that have "sold out" but still produce great beer (Ommegang anyone?). It isn't in a brewers (or large company's) interest to invest a large amount of money, then mismanage said investment to the point of losing money.

I can guarantee that Yuseff, Jack, and Jim will make sure that the acquisition from Constellation won't let beer suffer... they've spent a good chunk of their lives brewing and loving beer.

I'm happy for them, they worked hard and got a huge payout at the end, good job Ballast Point.

 

About AB-Inbev... I'm waiting until it gets split up, far too many people that matter are starting to notice that they're becoming a monopoly.

 

I assume it's just common sense.

 

Just please don't fuck with VaS.

 

Good for them.

 

I wouldn't hold your breath for lower prices. The acquirer has to take on debt to make the purchase and they expect to pay off the debt and make a return. They'll want to increase sales, but also increase earnings. They won't lower prices.

 

Announcing an IPO is also a message to potential acquirers, "This is your last chance before things get more complicated and expensive"

 

I cannot blame them at all. I have no idea how Constellation Brands operates, but if they are a company that continues to support laws that restrict independent craft breweries, I will no longer support Ballast Point.

That, generally, is where I draw the line.

 

Not sure what you mean tied at the hip. I think they are in some sort of supply agreement with InBev until their plant expansion is completed in Nava, but other than that not sure what this means

 

Yeah, I also disagree with the tied at the hip concept. The supply agreement is ending within the next year or two, and constellation pulled all Corona et al from the AB owned distributor branches.

 

This, exactly this.

I'm not mad at Ballast Point. The beer is not automatically crap now, and I don't begrudge someone growing and selling a business. But I will never put a dime in a the pocket of a company that works against my choices as a consumer. No Bourbon County, no Lagunitas, and no Ballast Point.