News Funky Buddha Joins Constellation Brands

Discussion in 'Beer News & Releases' started by Lansman, Aug 10, 2017.

  1. Lansman

    Lansman Aspirant (239) Mar 19, 2011 Missouri
    Beer Trader

    VICTOR, N.Y., Aug. 10, 2017 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE:STZ) (NYSE:STZ.B), a leading beverage alcohol company, announced today its purchase of Florida-based Funky Buddha Brewery, reinforcing its strategy to lead the high-end beer segment in the United States. Funky Buddha is the fastest growing craft brewery in Florida, and produces bold craft beers made with high quality ingredients. It has an award-winning portfolio led by Floridian Hefeweizen and Hop Gun IPA. Funky Buddha joins Constellation's Craft & Specialty Beer Group in the beer division.

    Funky Buddha Lounge & Brewery was founded in 2010 in Boca Raton, Florida, by husband and wife Ryan and Giani Sentz. As the demand for Funky Buddha's beers skyrocketed, Ryan and Giani invited Ryan's brother KC Sentz, and his wife Melissa Sentz, to join the business. In 2013, the Sentz family started Funky Buddha Brewery, located in the heart of Oakland Park's burgeoning Culinary Arts District. At 54,000 sq ft and with a capacity of 45,000 BBLs, Funky Buddha Brewery is South Florida's largest craft microbrewery by size and volume, and is Florida's busiest tap room by beer sales.

    "We chose to partner with Constellation because we saw an alignment in vision and felt they gave us the greatest opportunity for growth and development," said Funky Buddha Head Brewer and President Ryan Sentz. "Constellation and Funky Buddha share a lot of the same ideals and passion for philanthropy, entrepreneurship and the art of craft beer. At the end of the day, we just really like the people we have met within the organization, each of whom share our dedication to making outstanding beer."

    2016 was a breakout year for Funky Buddha Brewery, receiving five gold medals in RateBeer's Best Awards. When it came to the Best Beers by Style, they dominated the Imperial Porter category with three gold medals for Morning Wood, Wide Awake It's Morning, and Last Buffalo in the Park. Maple Bacon Coffee Porter and Last Snow Coconut Coffee Porter both received gold medals in the Best Beers by Style Porter category. Maple Bacon Coffee Porter also was a Winner of the World Beer Cup2016 Gold Medal in the Specialty Beer category. And as the engine behind these high-quality beers, the Funky Buddha team was recognized by placing in the Top 100 Brewers category.

    "Adding a fantastic regional brand such as Funky Buddha to our craft beer portfolio, along with Ballast Point, advances our strategy in continuing to lead the high-end beer segment," said Paul Hetterich, executive vice president and president of the beer division at Constellation Brands. "The Sentz family has created a culture of bold creativity, innovation and entrepreneurship. Those qualities, combined with our beer division's market reach, distributor partnerships, consumer insights, and our craft expertise within Ballast Point, will help nurture and develop Funky Buddha's distinctive brand."

    Constellation Brands and Funky Buddha Brewery's team of employees will continue to work together, with Ryan and KC Sentz running the day-to-day operations. Funky Buddha's standard of brewing will remain unchanged, delivering the same culinary-style, creative beer consumers and craft beer enthusiasts celebrate today.

    Terms of the transaction were not disclosed.

    About Constellation Brands
    Constellation Brands (NYSE:STZ) (NYSE:STZ.B), a Fortune 500® company, is a leading international producer and marketer of beer, wine and spirits with operations in the U.S., Mexico, New Zealand, Italy and Canada. Constellation is the No. 3 beer company in the U.S. with high-end, iconic imported brands such as Corona Extra, Corona Light, Modelo Especial, Modelo Negra and Pacifico. The company's beer portfolio also includes Ballast Point, one of the most awarded craft brewers in the U.S. In addition, Constellation is the world leader in premium wine, selling great brands that people love, including Robert Mondavi, Clos du Bois, Kim Crawford, Meiomi, Mark West, Franciscan Estate, Ruffino and The Prisoner. The company's premium spirits brands include SVEDKA Vodka, Casa Noble Tequila and High West Whiskey.

    Based in Victor, N.Y., the company believes that industry leadership involves a commitment to brand building, our trade partners, the environment, our investors and to consumers around the world who choose our products when celebrating big moments or enjoying quiet ones. Founded in 1945, Constellation has grown to become a significant player in the beverage alcohol industry with more than 100 brands in its portfolio, about 40 wineries, breweries and distilleries, and approximately 9,000 talented employees. We express our company vision: to elevate life with every glass raised. To learn more, visit www.cbrands.com.

    About Funky Buddha
    Founded in 2010 in Boca Raton, Florida, Funky Buddha Brewery® is committed to producing bold craft beers that marry culinary-inspired ingredients with time-honored technique. Its lineup includes year-round brews Floridian Hefeweizen and Hop Gun IPA, along with specialty releases such as Last Snow and the highly sought after Maple Bacon Coffee Porter. Its Oakland Park production brewery opened in June 2013 and distributes draught and bottled beer to retail outlets throughout Florida.
     
    ShanePB likes this.
  2. ShanePB

    ShanePB Poo-Bah (1,654) Sep 6, 2010 Pennsylvania
    Beer Trader

    I had heard rumors the past few weeks that a purchase of Funky Buddha was coming. And well, here it is! I was surprised they were on the radar for acquisition to be honest.
     
  3. Vason

    Vason Initiate (160) Feb 19, 2008 Ohio

    So, what's the over/under on this deal being anywhere close to the Billion they paid for Ballast Point?
     
    skiking70 and Ranbot like this.
  4. ShanePB

    ShanePB Poo-Bah (1,654) Sep 6, 2010 Pennsylvania
    Beer Trader

    I would be interested in the numbers, too. Constellation Brands appears to really enjoy these (sometimes artificially) flavored beers! :wink:
     
  5. CBrodbeck

    CBrodbeck Defender (665) Nov 1, 2014 Florida
    Beer Trader

    145 million is the word on the street.
     
    HeartofMiami likes this.
  6. CBrodbeck

    CBrodbeck Defender (665) Nov 1, 2014 Florida
    Beer Trader

    And I'm surprised it didn't happen sooner. Feel like the writing has been on the wall for a while.
     
    lateralusbeer and HeartofMiami like this.
  7. Thirst_trappist

    Thirst_trappist Initiate (95) Jan 18, 2016 Florida
    Beer Trader

    I don't think anyone is too upset... Are they? Their production and distribution was very large in Florida.
     
  8. tadahster

    tadahster Initiate (0) Feb 2, 2011 Switzerland
    Subscriber

    I asked Ryan last year about selling his brewery. This is the answer he gave me:

    "Getting offers is going to happen not because we are Funky Buddha, but it’s going to happen to any brewery that gets to a certain point. At least for the next couple of years. [...]
    If someone would offer me one billion dollar, I think I’ll cash in. I would be able to take care of a lot of people. It would be insulting not to take that money."

    Read the full interview here: http://www.bierversuche.ch/blog/2016/03/interview-with-ryan-sentz-funky-buddha-brewery/
     
  9. HouseofWortship

    HouseofWortship Aspirant (288) May 3, 2016 Illinois
    Beer Trader

    Nowhere near is my guess. Ballast Point also had a lucrative spirits business that was part of the deal if I recall correctly.
     
    maltmaster420 likes this.
  10. gabea

    gabea Aspirant (249) May 5, 2009 New York
    Subscriber Beer Trader

    I guess Ballast Point got in at the right time :grin:
     
  11. Henryb22

    Henryb22 Initiate (174) Jun 18, 2014 South Carolina
    Beer Trader

    Tired of the "opportunity for growth and development" thing. Not every craft brewery needs to be a big like stone/bells/sierra nevada. Really enjoying the local breweries much more that only distribute within their city or just out of. Several years ago when we didnt have 5K+ breweries there was room for the stones/bells/sierra nevada to grow and it was welcomed because you could get quality beer. Thats not needed anymore because pretty much every city has at least one decent brewery.
     
  12. Mattybz28

    Mattybz28 Initiate (130) Dec 21, 2010 South Carolina
    Beer Trader

    Ballast Point was already nearly national when they sold. FB isn't near their capacity or distribution.
     
    chrismattlin and rgordon like this.
  13. StoutSnob40

    StoutSnob40 Poo-Bah (1,691) Jan 4, 2013 California
    Beer Trader

    Good. Now I can continue to not drink their beers. So overrated.
     
  14. ekardz

    ekardz Aspirant (298) Dec 6, 2009 New York
    Beer Trader

    i agree 100%, never saw the hype
     
  15. mumbles44

    mumbles44 Initiate (129) Jan 22, 2016 New Jersey
    Beer Trader

    heard $145mm for the sale..

    Personally i'd take Las Snow & MBCP distro in NJ any time..
     
  16. manbearpack

    manbearpack Disciple (356) Feb 10, 2013 Texas
    Subscriber Beer Trader

    Not surprising at all, they've been gearing up to sell for a while, but quality has dropped.
     
  17. yytle

    yytle Initiate (122) Mar 7, 2016 Florida
    Beer Trader

    that would be nice, but the writing was on the wall for Funky Buddha for a while now. they blew up into a regional brewery quickly from a small homebrew shop operation. with that was a commitment right out the gate with several core beers and an aggressive seasonal calendar.
     
  18. dm3_brews

    dm3_brews Initiate (110) Jul 13, 2017 Florida

    agreed, wish they had held off imperial memberships though, literally announce this 10 days after our renewal started lol.
     
  19. CBrodbeck

    CBrodbeck Defender (665) Nov 1, 2014 Florida
    Beer Trader

  20. MissFeisty

    MissFeisty Initiate (146) Dec 18, 2012 California
    Beer Trader

    This is awesome news if it means a more consistent product and wider distribution.
     
  21. DISKORD

    DISKORD Initiate (65) Feb 28, 2017 Virginia

    Interesting! Seems like every time I wish for a brewery to distribute here, this happens. At least they didn't sell out to AB/InBev.
     
    rgordon, craigo19 and Lone_Freighter like this.
  22. Henryb22

    Henryb22 Initiate (174) Jun 18, 2014 South Carolina
    Beer Trader

    Yeah just saying I dont think there is much more room for this. Shelf and tap space is limited so gonna start seeing some breweries being squeezed out. I just hope its not the little guys.
     
    CBrodbeck likes this.
  23. AnchorDrops

    AnchorDrops Aspirant (269) May 11, 2013 Michigan
    Beer Trader

    My thoughts exactly. Some of the most overrated beer I have ever had.
     
  24. socon67

    socon67 Poo-Bah (1,633) Jun 18, 2010 New York

    So..... does this make the Funky Buddha line shorter at GABF?
     
  25. AmeriCanadian

    AmeriCanadian Zealot (585) Jul 5, 2014 Tennessee
    Subscriber

    I actually heard from a Ballast Point rep around the time of the transaction that the spirits business ended up NOT being part of the deal, which was quite the coup. Hadn't thought about it since then, but the below-linked article suggests that's true, which makes the $1B Jack White and company collected in the deal that much more insane.
    https://www.sandiegoreader.com/news/2017/feb/06/booze-former-ballast-point-execs-get-liquors/#
     
    HouseofWortship likes this.
  26. LakerLax21

    LakerLax21 Initiate (106) May 16, 2017 New Jersey

    I believe the spirits division of Ballast Point split from the brand and is now operating as "Cutwater"
     
    SouthAtholSuds likes this.
  27. EvenMoreJesus

    EvenMoreJesus Devotee (401) Jun 8, 2017 Pennsylvania
    Supporter

    But . . . but . . . but . . . THEY'RE NOT CRAFT NOW!!!!!!!!!!!
     
    Tdizzle, tzieser, JayORear and 4 others like this.
  28. HouseofWortship

    HouseofWortship Aspirant (288) May 3, 2016 Illinois
    Beer Trader

    Wow, that does make that 1B valuation absurd....
     
    Tdizzle and FFFjunkie like this.
  29. socon67

    socon67 Poo-Bah (1,633) Jun 18, 2010 New York

    And thus the battle of those who love increased accessibility meets those who boycott this "sellout". Get your popcorn ready.
     
    tzieser, HermitDan and EvenMoreJesus like this.
  30. MFMB

    MFMB Champion (836) Jan 23, 2015 Idaho
    Beer Trader

    Oh no! I got a Last Snow in my fridge that will no doubt turn into a Negra Modelo if not consumed soon :slight_frown: I know what I'm drinking this weekend.
     
    Tdizzle, Hayden34, ericwo and 2 others like this.
  31. AlexM

    AlexM Zealot (537) Jun 9, 2011 California
    Beer Trader

    But will they continue to have HIDDEN DICKS on their labels??? :slight_smile:
     
  32. EvenMoreJesus

    EvenMoreJesus Devotee (401) Jun 8, 2017 Pennsylvania
    Supporter

    Though not particularly a fan of FB, more beer available to more people is a great thing.
     
    DISKORD likes this.
  33. lordofthemark

    lordofthemark Aspirant (290) Jan 28, 2015 Virginia

    Are there no limits to shelf/tap space? (Note this is an issue for all distro growth, not just acquisitions )
     
  34. maltmaster420

    maltmaster420 Aspirant (290) Aug 17, 2005 Oregon
    Beer Trader

    Nowhere close. I'm sure Constellation learned a hard lesson when they had to take a $100M+ write down against the value of Ballast Point at the end of Q2.
     
    Tdizzle and dennis3951 like this.
  35. JackHorzempa

    JackHorzempa Poo-Bah (3,003) Dec 15, 2005 Pennsylvania
    Supporter

    Another independent craft brewery sells out to BIG beer.

    Three months ago there was the thread entitled “Wicked Weed Brewing Brings Flavor and Funk to The High End” and that thread ended up reaching 20 pages.

    Will this thread get to 20 pages? I am willing to bet not since Funky Buddha did not sell out to the most ‘evil’ of BIG beer (ABI).

    Cheers!
     
  36. EvenMoreJesus

    EvenMoreJesus Devotee (401) Jun 8, 2017 Pennsylvania
    Supporter

    Of course there is. I, maybe for one, am usually excited to have new beers available to me. Now whether they stay popular enough in the area to justify further supply, is a story for another thread.
     
  37. HouseofWortship

    HouseofWortship Aspirant (288) May 3, 2016 Illinois
    Beer Trader

    With their pick, Heineken buys Shorts.
    With the next pick, Constellation buys Funky Budda.
    ABI, you are on the clock....
     
  38. JackHorzempa

    JackHorzempa Poo-Bah (3,003) Dec 15, 2005 Pennsylvania
    Supporter

    So, what are you thinking? Destihl?

    Cheers!
     
    jhartley likes this.
  39. HouseofWortship

    HouseofWortship Aspirant (288) May 3, 2016 Illinois
    Beer Trader

    Lol, not unless they are purchasing it for the infrastructure to move other craft brands there....
     
  40. MistaRyte

    MistaRyte Disciple (370) Jan 14, 2008 Virginia

    I guess to sorta quote George Orwell "All big beer is evil... except some big beer is more evil than others."
     
    WillieThreebiers, ericwo and jhartley like this.
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