Ballast Point bought out by major distributor
SAN DIEGO (KUSI) – Ballast Point Brewing & Spirits was acquired by Constellation Brands for $1 billion Monday.
Ballast Point, a nearly 20-year-old operation known for its popular Sculpin IPA and Grapefruit Sculpin IPA, will continue as a stand-alone company with its existing management team and employees running the day-to-day operations, Constellation announced.
Ballast Point will be able to tap into Constellation’s finances to continue its growth.
"We started this business nearly 20 years ago with a vision to produce great beer that consumers love and to do it the right way," said Jack White, Ballast Point’s founder.
"To achieve that vision, we needed to find the right partner," White said. "The team at Constellation shares our values, entrepreneurial spirit and passion for beer, and has a proven track record of helping successful premium brands reach the next level of growth and scale."
Constellation, which imports and distributes name brands like Corona, sees this as a great opportunity to enter the fast-growing craft beer market.
According to a joint statement by the companies, Ballast Point is on pace to sell nearly 4 million cases this year, double the number it sold last year. Net sales for calendar 2015 are expected to approximate $115 million.
According to the Brewer’s Association, Ballast Point ranked 31st craft brewer in the U.S. in 2014 with the highest sales volume. The region’s largest-seller, Stone Brewing, was ninth.
Ballast Point employs more than 500 employees, produces beer in four facilities in the San Diego region and sells its beer in over 30 states.