Rob Sands

Ballast Point Cashes In for $1 Billion

No question about it. Acquisitions are craft beer’s number-one story in 2015. Today brought news that Constellation Brands, which owns Corona, Modelo Especial, and other Mexican beers agreed to buy San Diego-based Ballast Point Brewing Company. The price tag: $1 billion, or roughly $6,000 a barrel based on Ballast Point’s current-year production.

Constellation’s CEO, Rob Sands, found Ballast Point attractive because its beers are so profitable. Sculpin IPA typically sells for several dollars more than other brands of India pale ale, and Ballast Point’s revenue per barrel is nearly 25 percent higher than the craft beer industry’s average.

Ballast Point beers are currently available in 30 states. Constellation, which has relations wish large retail chains such as Kroger Company, intends to take the brand national.

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