Author Topic: Constellation Brands Buys Ballast Point  (Read 1376 times)

Offline hopfenundmalz

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Constellation Brands Buys Ballast Point
« on: November 16, 2015, 03:25:11 PM »
The $1Billion price blows the $1k*bbl/year benchmark out of the water. Which brewery is next?

http://www.bloomberg.com/news/articles/2015-11-16/constellation-to-acquire-ballast-point-brewery-for-1-billion
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Offline Stevie

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Re: Constellation Brands Buys Ballast Point
« Reply #1 on: November 16, 2015, 03:29:54 PM »
$1B is insane.

Offline HoosierBrew

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Re: Constellation Brands Buys Ballast Point
« Reply #2 on: November 16, 2015, 03:31:59 PM »
Wow.  I'm pretty sure I'd sell, too.
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Offline AmandaK

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Re: Constellation Brands Buys Ballast Point
« Reply #3 on: November 16, 2015, 03:44:54 PM »
Wow.  I'm pretty sure I'd sell, too.

Same here.

BTW - can someone explain this? Expects $115M in sales in 2015, purchase price $1.0B. That must be some serious accountant wizardry.
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Offline HoosierBrew

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Re: Constellation Brands Buys Ballast Point
« Reply #4 on: November 16, 2015, 03:53:19 PM »
Wow.  I'm pretty sure I'd sell, too.

Same here.

BTW - can someone explain this? Expects $115M in sales in 2015, purchase price $1.0B. That must be some serious accountant wizardry.


I thought the same. Great brewery, but seems like the buyer overpaid by a TAD. Maybe not.
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Offline hopfenundmalz

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Re: Constellation Brands Buys Ballast Point
« Reply #5 on: November 16, 2015, 04:28:07 PM »
Wow.  I'm pretty sure I'd sell, too.

Same here.

BTW - can someone explain this? Expects $115M in sales in 2015, purchase price $1.0B. That must be some serious accountant wizardry.

Lagunitas sold 50% for $500 Million, they are about 1000000 bbl/year.
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Offline Thirsty_Monk

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Re: Constellation Brands Buys Ballast Point
« Reply #6 on: November 16, 2015, 09:40:19 PM »
Another one. This means that craft beer is a main stream.
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Offline muzak

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Re: Constellation Brands Buys Ballast Point
« Reply #7 on: November 16, 2015, 10:36:47 PM »
Another one. This means that craft beer is a main stream.

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Re: Constellation Brands Buys Ballast Point
« Reply #8 on: November 17, 2015, 01:04:39 AM »

Another one. This means that craft beer is a main stream.

Next they'll start buying up the homebrew all-stars! The headlines will read:

"THIS JUST IN! Evil Brewing giant offers Conn and Beechum 100 gigadrillion dollars to homebrew exclusively for Cthulhu in their evil corporate lair."

Offline BrewingRover

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Re: Constellation Brands Buys Ballast Point
« Reply #9 on: November 17, 2015, 12:52:09 PM »
Quote from: Bloomberg
Constellation Chief Executive Officer Rob Sands said in an interview that Ballast Point’s value comes in its fast-paced growth and high prices.
So they paid that much because they think they can keep up the growth and pricing. It's interesting to me given how they had structured their IPO to ensure the founders kept full control. Hard to turn down a pile of cash that size!
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Offline reverseapachemaster

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Re: Constellation Brands Buys Ballast Point
« Reply #10 on: November 17, 2015, 03:11:51 PM »
Not only had Lagunitas set the tone for a higher price but Ballast Point also has a distilling operation. Distilling is considered the next big boom market in craft products but many of the craft distillers are not big enough or regularly producing enough volume to attract a big buyer. Ballast Point doesn't produce a large volume of distilled products yet but they have the capacity and experience with distribution chains to easily grow into a larger distilling operation. So it isn't just about buying the brewery but the combination of the two businesses.
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Offline ranchovillabrew

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Re: Constellation Brands Buys Ballast Point
« Reply #11 on: November 17, 2015, 03:58:07 PM »
Except the sale didn't include the distilling side
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Offline theDarkSide

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Re: Constellation Brands Buys Ballast Point
« Reply #12 on: November 17, 2015, 04:30:10 PM »
Except the sale didn't include the distilling side
Some stories seem to contradict and support this claim.  I can't imagine the $1B wouldn't include the distilling.
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Offline pete b

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Re: Constellation Brands Buys Ballast Point
« Reply #13 on: November 17, 2015, 04:32:42 PM »
I remember not to long ago these posts about breweries cashing in would cause a big debate about "selling out" or not. Now they just get a "meh" followed by a discussion of the details. Just an observation.
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Re: Constellation Brands Buys Ballast Point
« Reply #14 on: November 17, 2015, 05:09:38 PM »

Another one. This means that craft beer is a main stream.

Next they'll start buying up the homebrew all-stars! The headlines will read:

"THIS JUST IN! Evil Brewing giant offers Conn and Beechum 100 gigadrillion dollars to homebrew exclusively for Cthulhu in their evil corporate lair."

I can only wish. 
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