Constellation Brands has secured a deal to sell Ballast Point – which it bought for approximately $1 billion in 2015 – to Chicago-based brewer Kings & Convicts.
The deal includes a number of Ballast Point’s production facilities and brewpubs, excluding Constellation’s craft and specialty operations in Daleville, Virginia.
As part of this agreement, Kings & Convicts will retain all positions within Ballast Point’s existing workforce, with plans to hire additional resources to support the future growth of the business.
“Trends in the US craft beer segment have shifted dramatically since our acquisition of Ballast Point,” said Bill Newlands, Constellation Brands president and CEO.
“Ballast Point remains one of the most iconic craft beer brands in the country and we’re pleased to transition the business to an owner that can devote the resources needed to fuel its future success.
“At the same time, this decision allows Constellation to focus more fully on maximising growth for our high-performing import portfolio and upcoming new product introductions, including Corona Hard Seltzer, scheduled to launch this spring.”
Kings & Convicts is a little-known Chicago-area brewer that sells its craft beer Illinois and Wisconsin.
“We’re excited to welcome the team at Ballast Point into the Kings & Convicts family,” said Brendan Watters, Kings & Convicts CEO.
“We have long admired the quality and spirit of Ballast Point’s brands and team. Ballast Point’s best-in-class brewing standards will remain unchanged, delivering the same high-quality, award-winning products the company has become known for over the years.
“Our goal is to leverage Ballast Point’s deep know-how, talented and passionate employee base, and outstanding operating team to grow both Ballast Point and Kings & Convicts together.”
The transaction is expected to close by March 2020.
The announcement follows a spike in activity in the craft beer sector in recent weeks. Anheuser-Busch last month secured a deal to acquire the remaining 68.8% stake of Kona Brewing owner Craft Brew Alliance that it does not own.
Meanwhile, New Belgium Brewing agreed to sell 100% of the company to Lion‘s craft beverages division, Lion Little World Beverages.
© FoodBev Media Ltd 2024
