Constellation Brands to Acquire Ballast Point Brewing & Spirits

That is kind of an insane price. Good for them but wow $1 bn on a company with $115 million in sales. I wonder what their earnings are? If 10% net margin they are earning ~$11.5 million/year and being bought at 87x earnings...

The only thing that could mean is constellation expects huge growth.

 

For me this is a blessing as it is one more beer brand I won't have to struggle over whether or not I want to purchase since they were just about to expand into Michigan. I have far too many great choices on the shelf now to ever have to worry about putting a dollar into AB's pocket.

 

I was determined to read through the whole thread before saying these exact words. There are plenty of options for buying craft beer where the profits won't end up in the hands of a business profiting billions per year. Hate the argument "beer is beer." Money is also money and I'll be conscious of where I spend mine.

 

Hope their Horchata Porter will be distributed more now.

 

There must me a misconception here. What Sixpoint is pointing out by buying Gupo Modelo beers in the US you are somewhat helping InBev due to the licensing agreement that Constellation has with InBev for that product. I don't see how buying Ballast Point product funnels money to InBev.

 

So one can tell a story, be dedicated to the cause for years, criticize others who sell out, but when you get thrown a truck full of money, all that story telling and brand building goes out the window? It was all horse shit sales tactics all these years? I think many feel lied to in a sense.. Let people vent for a couple days. I own many beers that I don't even know the story to in regards to ownership etc.. So I think this may fade a little bit. But for now, BP can suck on some rotten eggs as they face this deserved backlash.

 

Couldn't have said it better myself!

 

I think I remember reading somewhere that Inbev would have to shed the Constellation brands in order to get the SABMiller deal to go through for some reason...

 

No, they have to shed Miller-Coors in the US only by selling it to Molson. I don't remember seeing anything about them divesting Modelo.

I'm sure they did their due diligence on this. They're probably not going to buy Modelo in 2013 and sell it two years later.

 

Thank you for this.

Someone really needed to say it.

 

$1 Billion? Now that is one giant dump truck of money, I'd find it hard for ANYONE to say no to that.

 

The person at BP that developed the Sculpin recipe should get a massive bonus. BP has been making several great beers for years, but I feel like the recent massive distribution of Sculpin in cans put them in position to be valued so highly.

 

I am not boycotting any brewery, but when I have a decent choice, I will support smaller over larger. I am not convinced that the craft beer / macro beer culture difference is dead.

 

OK, fine. But as someone who does not have a billion dollars, and cares where my hard earned money goes, it is easy for me to direct my spending elsewhere.

 

Part of the craft beer culture is drinking locally, supporting small businesses, and focusing on the CRAFT over making barrels of cash / dominating the marketplace / bullying competitors.

Buying a beer from Anheuser-Busch / InBev (with a Sculpin or Golden Road label on it) is not really supporting that culture.

 

They were definitely doing something right.

They out sold their entire 2014 barrelage in just the first half of 2015. I think they are on pace for something like 240k barrels this year. Quite a few smaller breweries seem to see that 200-300% growth year after year as they start from small and build up. Expected gross profits of $52 million in 2015, compared to $22 in 2014, and $12 in 2013. I feel the big boys see that and say, We can 5x production, get it into 20 countries, 10 more states, and gross $100 million easily within the next year. All it would take from there is 5 more years of growth, and like I said in my prior post, pure profits. Although, I don't see a doubling of their profits year after year. So this is definitely long term and a bit risky. Every bottle bought isn't going into the pockets of a local SD brewery with "grass roots" though. So we aren't really helping them grow. We're helping a mega corp. Although, they may have just said, "this brand is hurting our Corona sales (which are just crazy), let's buy them up, and we benefit regardless".

Also of note, unless I'm reading this wrong, they had $5.5 in cash, with total assets of $56 million, and total liabilities of $38 million. Quite a few loans were being paid off too.

The growth potential is sky high. But wow, they really got a deal of a century imho.

 

FIFY.

 

You are right I did misread that but still goes against my nature to first and foremost support my locals long before I feed corporations. Not just over beer but damn near everything I try to shop for.

 

Stock didn't really bump up so far wow. $STZ

Everyone who's surprised with the valuation need to chill out and look at their sales and revenue

 

If this means Sculpin in KY, fantastic.