Constellation Brands (NYSE: STZ) is expanding in the craft beer market by buying privately-held Ballast Point Brewing & Spirits for $1 billion.
Ballast, founded in 1996, offers more than 40 different styles of craft beer under its Sculpin IPA and Grapefruit Sculpin IPA brands. The San Diego-based target is expecting to close out 2015 with around $115 million in sales and is on track to sell about four million in cases of beer, which would represent 100 percent growth from 2014. Ballast has four production facilities in California and distributes across 30 states.
“Along with imports, craft beer is a key driver of growth and premiumization within the beer industry, with craft doubling its share of the U.S. beer market in the last five years,” says Constellation CEO Rob Sands. Constellation is funding the acquisition with cash and debt.