VICTOR, N.Y. — Constellation Brands Inc. has completed its sale of Ballast Point to Kings & Convicts Brewing Co.
The transaction includes Ballast Point and some of its associated production facilities and brewpubs, excluding Constellation’s operations facility in Daleville, Va., according to the company. Financial terms were not disclosed.
“The sale of Ballast Point aligns with Constellation’s consumer-led premiumization strategy, which focuses on winning in growing sectors of the high-end of the U.S. beer market with strong brands that drive high growth and high-margin performance,” Constellation Brands said. “This strategy has helped fuel the company’s performance as one of the strongest growth drivers in the U.S. beer market.”
Constellation Brands’ President and CEO Bill Newlands said trends in the U.S. craft-beer segment have changed since its acquisition of Ballast Point in 2015 and this decision allows Constellation Brands to focus on maximizing growth in its high-performing import portfolio.
Highwood, Ill.-based Kings & Convicts Brewing Co. brews ales and lagers out of its 5,000-square-foot taproom on the North Shore of Chicago. San Diego-based Ballast Point’s volume is expected to surpass 200,000 barrels in 2019 and is available in all 50 states and internationally, according to Kings & Convicts, which started in 2017. Ballast Point has six breweries in California and Chicago.