A Craft Brewery Just Sold For $1 Billion

Craft Beer Acquisition

Constellation Brands, the company that makes Corona Extra and Modelo Especial, announced on Monday that it is paying $1 billion for brewery Ballast Point Brewing & Spirits.

Constellation is paying for Ballast Point’s growth potential. The company currently sells more than 4 million cases of beer per year. It doubled its sales in 2015.

Net sales are forecast to hit $115 million at the company.

The Brewers Association, an industry trade group, said that craft beer sales grew by nearly 18% last year.

In 2008, there were 8.5 million barrels of craft beer products. By 2014 that number skyrocketed to 22 million barrels.

There has been a race to capture more of the craft brew market. AB InBev acquired Seattle’s Elsyian Brewing in January and Oregon’s 10 Barrel Brewing and Chicago-based Goose Island in 2014. SABMiller announced it was buying London’s Meantime Brewing Co., a leading U.K. craft beer.

In the meantime AB InBev announced it would acquire SABMiller for $104 billion, a deal that was formalized last week.

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Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at PeterMondrose@BusinessPundit.com or (929) 265-0240.