Anchor ads are not supported on this page.

4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs

Ballast Point sells for $1 billion

...that's $13.89 cents per pint

Cans of Ballast Point beer stack high in it's Miramar production facility. The brewery estimates it will sell four million cases this year.  - Image by Andy Boyd
Cans of Ballast Point beer stack high in it's Miramar production facility. The brewery estimates it will sell four million cases this year.

The San Diego beer scene is seeing dollar signs this week with the announcement that Ballast Point sold for a whopping $1 billion. The buyer is Constellation Brands, a multinational beverage conglomerate that deems itself "the world's leading wine company." Its dozens of wine brands include well-known Robert Mondavi, Ravenswood, and Clos du Bois.

It's also the third-largest beer producer in the U.S., though until now its beer portfolio has been craftless, composed entirely of Mexican brands Corona, Modelo, Pacifico, and Victoria.

It's quite the trajectory for Ballast Point, started by a small group of homebrewers nearly 20 years ago. The company had recently filed with the SEC to pursue an estimated $172.5 million IPO, but that seems like chump change in retrospect.

Sponsored
Sponsored
Cans of Ballast Point, soon to be distributed by the nation's third largest beer company, Constellation Brands.

The billion-dollar price corresponds to the worth of another California craft beer entity, Lagunitas Brewing Company, which sold a 50-percent stake to Heineken for $500 million in September.

As with Lagunitas, and Miramar's Saint Archer (now a part of MillerCoors), the Ballast Point team insists neither brewing personnel nor recipes will change. According to Ballast's Facebook page announcement of the sale, "We will continue to be a stand-alone company, brewing the beer that we like to drink with our team in place."

In a press release, Ballast Point reports an anticipated 2015 sales increase of "more than 100 percent versus calendar 2014." Founder Jack White suggested the sale was motivated by an urge to continue growing the brand. In a statement, he lauded Constellation's "proven track record of helping successful premium brands reach the next level of growth and scale."

The size of the investment certainly suggests Constellation will push the brand far and wide. Ballast Point expects to sell four million cases of beer in 2015, or roughly 290,000 barrels. Considering the Wall Street Journal's estimation of a brewery's worth to be at $1000 per annual barrel, the billion dollar price tag exceeds that by more than triple. It's basically $13.89 per pint brewed in 2015 — a pretty good deal for Ballast ownership.

And it might make room in the local market for some smaller craft breweries. Fan reactions on Ballast Point's Facebook announcement were largely negative, suggesting local drinkers will stop drinking its beers. One commenter responded, "I hope the access to new distribution networks makes up for the loss of loyal craft beer fans."

Another pondered, "As a local San Diegan and long-time supporter of your brewery, why should we continue to support Ballast Point and not other local craft breweries like you once were?"

Other commenters ranged from more direct to blunt, adding, "Ballast Point will never be in my fridge or cooler again," and, "Fucking sell outs."

Thus far, other local beer companies have remained pretty quiet about the sale. However, Modern Times did issue a typically playful tweet, highlighting the idea Ballast Point's most popular beer, Sculpin IPA, will share corporate stewardship with another high profile Constellation-owned beverage: "Tonight, we'll drown our sorrows in tasty Manischewitz and/or San Diego's leading IPA, both brought to you by the same folks. Crazy times!"

Here's something you might be interested in.
Submit a free classified
or view all
Previous article

Safe in Encinitas – coast live oaks, Engelmann oaks, Fremont cottonwoods, western sycamores, and Torrey pines

Not as safe – invasive trees, fruit trees, palm trees.
Next Article

Lakeside fire water failure

What do you mean you ran out of water? My house is on fire!
Cans of Ballast Point beer stack high in it's Miramar production facility. The brewery estimates it will sell four million cases this year.  - Image by Andy Boyd
Cans of Ballast Point beer stack high in it's Miramar production facility. The brewery estimates it will sell four million cases this year.

The San Diego beer scene is seeing dollar signs this week with the announcement that Ballast Point sold for a whopping $1 billion. The buyer is Constellation Brands, a multinational beverage conglomerate that deems itself "the world's leading wine company." Its dozens of wine brands include well-known Robert Mondavi, Ravenswood, and Clos du Bois.

It's also the third-largest beer producer in the U.S., though until now its beer portfolio has been craftless, composed entirely of Mexican brands Corona, Modelo, Pacifico, and Victoria.

It's quite the trajectory for Ballast Point, started by a small group of homebrewers nearly 20 years ago. The company had recently filed with the SEC to pursue an estimated $172.5 million IPO, but that seems like chump change in retrospect.

Sponsored
Sponsored
Cans of Ballast Point, soon to be distributed by the nation's third largest beer company, Constellation Brands.

The billion-dollar price corresponds to the worth of another California craft beer entity, Lagunitas Brewing Company, which sold a 50-percent stake to Heineken for $500 million in September.

As with Lagunitas, and Miramar's Saint Archer (now a part of MillerCoors), the Ballast Point team insists neither brewing personnel nor recipes will change. According to Ballast's Facebook page announcement of the sale, "We will continue to be a stand-alone company, brewing the beer that we like to drink with our team in place."

In a press release, Ballast Point reports an anticipated 2015 sales increase of "more than 100 percent versus calendar 2014." Founder Jack White suggested the sale was motivated by an urge to continue growing the brand. In a statement, he lauded Constellation's "proven track record of helping successful premium brands reach the next level of growth and scale."

The size of the investment certainly suggests Constellation will push the brand far and wide. Ballast Point expects to sell four million cases of beer in 2015, or roughly 290,000 barrels. Considering the Wall Street Journal's estimation of a brewery's worth to be at $1000 per annual barrel, the billion dollar price tag exceeds that by more than triple. It's basically $13.89 per pint brewed in 2015 — a pretty good deal for Ballast ownership.

And it might make room in the local market for some smaller craft breweries. Fan reactions on Ballast Point's Facebook announcement were largely negative, suggesting local drinkers will stop drinking its beers. One commenter responded, "I hope the access to new distribution networks makes up for the loss of loyal craft beer fans."

Another pondered, "As a local San Diegan and long-time supporter of your brewery, why should we continue to support Ballast Point and not other local craft breweries like you once were?"

Other commenters ranged from more direct to blunt, adding, "Ballast Point will never be in my fridge or cooler again," and, "Fucking sell outs."

Thus far, other local beer companies have remained pretty quiet about the sale. However, Modern Times did issue a typically playful tweet, highlighting the idea Ballast Point's most popular beer, Sculpin IPA, will share corporate stewardship with another high profile Constellation-owned beverage: "Tonight, we'll drown our sorrows in tasty Manischewitz and/or San Diego's leading IPA, both brought to you by the same folks. Crazy times!"

Comments
Sponsored
Here's something you might be interested in.
Submit a free classified
or view all
Previous article

Looking to the bright lights of Mainly Mozart

The two concerts at the Conrad are going to be special occasions
Next Article

Marni von Wilpert gets Falck and Zoo to cough up for gay rights

Times of San Diego sells to Arizona State offshoot
Comments
Ask a Hipster — Advice you didn't know you needed Big Screen — Movie commentary Blurt — Music's inside track Booze News — San Diego spirits Classical Music — Immortal beauty Classifieds — Free and easy Cover Stories — Front-page features Drinks All Around — Bartenders' drink recipes Excerpts — Literary and spiritual excerpts Feast! — Food & drink reviews Feature Stories — Local news & stories Fishing Report — What’s getting hooked from ship and shore From the Archives — Spotlight on the past Golden Dreams — Talk of the town The Gonzo Report — Making the musical scene, or at least reporting from it Letters — Our inbox Movies@Home — Local movie buffs share favorites Movie Reviews — Our critics' picks and pans Musician Interviews — Up close with local artists Neighborhood News from Stringers — Hyperlocal news News Ticker — News & politics Obermeyer — San Diego politics illustrated Outdoors — Weekly changes in flora and fauna Overheard in San Diego — Eavesdropping illustrated Poetry — The old and the new Reader Travel — Travel section built by travelers Reading — The hunt for intellectuals Roam-O-Rama — SoCal's best hiking/biking trails San Diego Beer — Inside San Diego suds SD on the QT — Almost factual news Sheep and Goats — Places of worship Special Issues — The best of Street Style — San Diego streets have style Surf Diego — Real stories from those braving the waves Theater — On stage in San Diego this week Tin Fork — Silver spoon alternative Under the Radar — Matt Potter's undercover work Unforgettable — Long-ago San Diego Unreal Estate — San Diego's priciest pads Your Week — Daily event picks
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
Close

Anchor ads are not supported on this page.