AleSmith Partners With Mikkeller

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AleSmith Brewing of San Diego, California announced this morning that they’ve entered into a “creative enterprise” with Mikkel Borg Bjergsø to establish Mikkeller Brewing,” taking over day-to-day operation of San Diego’s second-oldest craft brewing facility. So essentially, as far as I can tell, Mikkel will be taking over the original AleSmith location, with Pete Zien retaining a minority stake in the business. Mikkel will get the older, original 30-barrel brewing system — which will become Mikkeller San Diego — and AleSmith will operate the newer 105,500-square-foot facility located two blocks west of MSD.

San Diego, California (December 8, 2015) — Two world-renowned brewing interests are proud to announce the launch of a creative partnership that will result in the planet’s most famous gypsy brewer acquiring a brick-and-mortar brewery to call his own. Mikkel Borg Bjergsø, the founder and creative mind behind Denmark-based Mikkeller, has officially entered into an agreement with AleSmith Brewing Company owner and brewmaster Peter Zien for the duo to establish a new company called Mikkeller Brewing San Diego. Bjergsø and Zien will possess ownership stakes in the business, which will be based within the storied confines of AleSmith’s original headquarters on Cabot Drive in San Diego’s Miramar community and produce beers for worldwide release.

“People have always asked me when I’m going to open my own brewery, and my answer has always been ‘never.’ It’s the easiest answer, but it’s been on my mind for several years,” says Bjergsø. “I like being a ‘gypsy brewer,’ but know that having a stake in a U.S. brewery will change our position here. Brewing in one of the best breweries in the world really makes sense. If they can brew beers like they do at AleSmith, it really can’t go wrong.”

Bjergsø’s vision will guide brewing operations at Mikkeller San Diego, which is equipped with the same 30-barrel brewing system AleSmith used to produce 15,000 barrels of beer annually before moving into a much larger, 105,500-square-foot facility two blocks west earlier this year. To ensure the fastest, most efficient transition, Zien will initially oversee multiple components of the brewing process and provide ongoing assistance on an as-needed basis. Additionally, several members of AleSmith’s original brewing team, the bulk of whose careers with the company have been spent operating the original brewery, will become employees of Mikkeller San Diego and usher the facility through its exciting second life.

“I am very excited to announce this partnership to the brewing world,” says Zien who will maintain a minority stake in the business. “Mikkel and I expect to create unique and flavorful beers of the highest quality, as we are both known for brewing with AleSmith and Mikkeller.”

Eager to embark on this shared next chapter in their brewing careers, Bjergsø and Zien worked with the eventual Mikkeller San Diego staff to craft two beers based off brand new recipes conceived by the former. Those beers, AleSmith-Mikkeller IPA (India Pale Ale) and AleSmith-Mikkeller APA (American Pale Ale) are currently on tap at Mikkeller Bar in San Francisco, Calif.; AleSmith’s recently debuted 25,000-square-foot Miramar tasting room; and numerous craft beer-centric venues throughout San Diego County. Thus far, they have been met positively by beer enthusiasts. Next up on the brew schedule is an imperial take on an English-style porter, which will be released via a similar distribution method. Eventually, numerous Mikkeller San Diego beers will be bottled, canned, and distributed more widely nationally and internationally.

In addition to beers brewed solely by Mikkeller San Diego personnel, Bjergsø intends to make a center of craft collaboration of his new digs by inviting respected brewers from all over the world to conceive and brew recipes that push the envelopes of what ales and lagers can be. In doing so, he will build off relationships forged during his decade spent trotting the globe in an ongoing mission to bring his beery ideas to life with the help of gifted brewers the world over. He will also reach out to new and upcoming brewers making waves within the industry, providing the basis for many happy returns among brewery visitors.

While the brewing component of Mikkeller San Diego’s campus—which consists of five suites within an intimate business complex—will remain mostly untouched, construction will soon commence to convert the 750-square-foot tasting room to an interior design concept more consistent with that of Mikkeller’s global beer bars. The sampling space is projected to open to the public in early 2016, offering an array of beers that simultaneously display traditionally stylistic roots while coming across as exploratory, adventurous and, in some cases, downright twisted. It will be the only place in the world to taste the entire array of Mikkeller San Diego beers in a single sitting.

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Matt Brynildson, from Firestone Walker, and Mikkel comparing beards with Sir Thomas Gresham at a pub in London.

Consumers File Lawsuit To Stop ABI Buying SABMiller

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In a particularly strange twist, 23 consumers — 19 from Oregon, 3 from California and 1 from Washington — have filed a lawsuit in the United States District Court, for the District of Oregon, Medford Division. The Plaintiffs are represented by two law firms, the Alioto Law Firm of San Francisco, California, and Cauble & Cauble, LLP of Grant’s Pass, Oregon. The lawsuit names both Anheuser-Busch InBev and SABMiller as Defendants and the initial filing requests “Injunctive Relief to Prohibit the Acquisition of SABMiller PLC by Anheuser-Busch InBev, SA/NV as a Violation of Section 7 of the Clayton Antitrust Act, 15 U.S.C. § 18.” The 33-page complaint is available to read online as a pdf. The Oregonian is reporting on at least a few of the Plaintiff’s rationales for the lawsuit. “I don’t think it’s good for consumers, I don’t think it’s good for industry, I don’t think it’s good for the tax base, I don’t think it’s good for any of that,” states Plaintiff James DeHoog, who owns an air quality and environmental consulting business in Central Point, which is near where the case was filed in Medford, Oregon. Courthouse News Service also has an account of the filing.

It will certainly be interesting to see how far they get with this.

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Patent No. 20130314244A1: Draft Beer Supply Chain Systems And Methods

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Today in 2013, US Patent 20130314244 A1 was issued, an invention of Steve Hershberger, Steve Kremer, Matt Mayer, and Mark Kosiarek, assigned to SteadyServ Technologies, LLC, for their “Draft Beer Supply Chain Systems and Methods.” Here’s the Abstract:

Supply chain systems and methods are disclosed for monitoring fluid levels in liquid containers, such as kegs. Embodiments include sensors that fit within a keg’s false bottom, measure the weight of the keg, and transmit the weight information to a computer database via a wireless network. Other embodiments include an RFID device with information about a characteristic of the liquid within a keg (such as brand and/or type of beer) that may be attached to the keg and paired with the sensor so the sensor can transmit information about the characteristic of the liquid in the keg. In alternate embodiments, the sensor’s transmitter is short range and an uplink/gateway is used to receive information from the sensor and relay that sensor’s information to a broader wireless network. Multiple containers in close proximity may each be fitted with an RFID device and sensor and communicate their individual information to the database.

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The Cult Of Propaganda

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Some of the definitions of a cult, as defined by Dictionary.com, include 1) “an instance of great veneration of a person, ideal, or thing,” 2) “a group or sect bound together by veneration of the same thing, person, ideal, etc.,” 3) “a religion or sect considered to be false, unorthodox, or extremist, with members often living outside of conventional society under the direction of a charismatic leader,” and 4) “any system for treating human sickness that originated by a person usually claiming to have sole insight into the nature of disease, and that employs methods regarded as unorthodox or unscientific.” That sure sounds like Alcohol Justice, and many other prohibitionist groups, to me. They hold up the ideal that alcohol is bad, and anyone making it, selling it or saying anything good about it is not only wrong, but evil. They use extremist rhetoric and tactics to advance their agenda and they’re certainly “outside of conventional society” since the majority of people enjoy alcohol from time to time, and without question they use “methods regarded as unorthodox or unscientific,” especially the unscientific variety masquerading as science. I don’t know if I’d call Bruce Lee Livingston “a charismatic leader;” he seems like more of an opportunist than an evangelist, but he’s also a “dancer” and a “tennis player,” so who knows? But as far as I can see, they pass the test for being a cult.

So it’s slightly amusing to see that the cult of propaganda, a.k.a. Alcohol Justice, has placed Anheuser-Busch InBev in the AJ Doghouse for the sin of making something that’s “flavored” and “glow-in-the-dark,” which of course means that it must be “youth-attractive,” whatever that means. And if that wasn’t vague enough for you, they helpfully include a link in their tweet to their doghouse explanation entitled “Flavored? Glow-in-the-dark? A-B InBev.” Which by itself seems fairly silly. I’m pretty sure almost everything, with the possible exception of neutral spirits, has a flavor of some kind. Frankly, even the neutral ones taste of something, I mean nobody confuses them with water. But why is glow-in-the-dark such a danger? Lots of things light up at night. What is Sheriff AJ so worried about this time?

In a desperate attempt to gain back young drinkers with tricks children enjoy, A-B InBev is going to dangerous lengths. A-B InBev hopes that its release of Oculto, a new tequila-infused citrus-flavored beer, will lure Millennials back to the A-B InBev stable and brands such as Bud Light.

I’m not sure what led them to declare it was “desperation” that led ABI to make Oculto, but the link tells you everything you need to know. It’s a Fast Company article from March of this year, meaning it took AJ nine months to sound the alarm. In its title, they ask Can AB InBev Seduce Millennials with a New Tequila-Infused Beer?, in which “Vice President of U.S. Marketing Jorn Socquet outlines the strategy behind the brewer’s new brand Oculto, which includes masks and secret messages.”

So who are these Millennials of which they speak? I’m never quite sure where one named generation starts, and another ends, so I took to that series of tubes known as the interwebs. When you Google the term, the immediate answer is “a person reaching young adulthood around the year 2000; a Generation Yer.” So that would mean ABI is targeting drinkers who reached adulthood at least 15 years ago. Oh, the horror. But other sources do claim Millennials include people who were born as late as 2000. But regardless to insist that ABI is targeting people below 21, who are legally unable to buy what they’re selling is, as usual, an absurdity. I’m not a fan of Oculto as a type of drink, alcopops, or even many of ABI’s products more generally, but they have enough legal customers not to risk doing something illegal or trying to court underage customers. That AJ continues to insist that they’re doing exactly that strains credulity and exposes them as charlatans who would say or do anything to advance their agenda, whether it make sense or not. But AJ goes on in their delusional way.

With a campaign based on elaborate masks, whispered secrets, and mysterious club parties where new drinkers are indoctrinated into the brand, more brand ambassadors join the Oculto fold. Yes, it does sound like a dangerous cult or hazing ritual.

No, it sounds like a bad idea to pander to young adults’ love of Halloween by co-opting imagery from Mexico’s — and all of South America’s — Day of the Dead celebrations. But if you’re worried about a dangerous cult, you need look no further than a mirror. When you start manufacturing controversy, you’re engaging in your own cult-like behavior. Don’t look behind the curtain, reality is what we say it is.

Like other alcohol brands hoping to appeal to youth and attract those who would otherwise reject beer, A-B InBev is focusing the majority of its Oculto marketing strategy on social media, e.g. Instagram. The label includes a glow-in-the-dark, Day-of-the-Dead-inspired skull that looks and acts like a children’s decoration. While A-B InBev attempts to illuminate the Oculto brand label, the risk of harm to young people inside the bottle glows brightly.

You keep using that word “youth.” I do not think it means what you think it means. AJ acknowledges that it was inspired by the Day of the Dead, but mis-characterizes it as “a children’s decoration.” Have they seen a Day of the Dead celebration? Apparently not, or they’d know better than to accuse a glow-in-the-dark skull as being exclusive;y for children. What is it about something that glows in the dark that makes it “youth-attractive” anyway? That similarly makes absolutely no earthly sense. I love phosphorus gadgets, and our house and outside of it, is filled with them. I’m about as far away from youth as one can get, and I love things that glow in the dark.

Also, the idea that the target for Oculto is to “get” people “who would otherwise reject beer” is ridiculous, and completely misleading and false. Did AJ even read the article they’re using to put ABI in the doghouse? The people who are rejecting beer are drinking “hard booze,” drinks like “whiskey and tequila.” So this is really AJ specifically targeting beer — sigh, again — and not alcohol in general. If they were really worried about kids, or people’s health, they’d be applauding this effort to get young adults to drink something far less potent than hard liquor. Oculto, even at 6% ABV, is still no where near as strong as the weakest tequilas or whiskies. Tequila is usually 80 proof, or 40% ABV, while whiskey is around 40-46% ABV. But ABI’s in the doghouse for trying to get people to drink their weaker offering. How does that make any kind of sense?

Their laughable insistence that anything kids, or even young adults perhaps not quite 21, might find appealing is, by definition, “youth-attractive,” is a canard, and a dangerous one that they use time and time again. There is no division between “youth-attractive” and “adult-attractive.” Such delineations do not exist in the real world. Many things adults like, kids like, too. And many things kids love, adults continue to enjoy, as well. The only people who “put away childish things” as so-called grown-ups are, in my opinion, idiots with a stick up their ass who forgot how to enjoy their one and only life. But they’re just the sort of person who might join a cult, even one trying to rid the world of beer.

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Pretty Beer To Stop Brewing

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Sad news. Dann and Martha Paquette, co-owners of the Pretty Things Beer and Ale Project posted on their website today their decision to cease the operations of their company. Explaining their decision in For a Beginning, there must be an End, here’s what’s up:

Seven years ago we sold our first glass of beer at The Publick House in Brookline. We didn’t foresee then that our strange project would become such a part of our lives.

It has been a crazy fun time. We’ve dressed up in more costumes than a Bob Hope special. Amazing employees and friends have conspired with us along the way. Bocky, Anya, and John Funke have channeled our project almost better than we have done ourselves. And we found a rag tag group of like-minded creative brewers out there in the world as well.

Brewing our beers has been a great labor and a great joy. But best of all we shared it with so many great beer drinkers. It really feels like we met you all. We’ve stood in shops, bars, restaurants, on stages, in VFW halls. Sometimes you were already fans. Sometimes you spat out our beer. Sometimes you just fancied a chat. We always felt happy to meet you by the end. It was always fun, or funny, or we sold a beer, or learned something. Many of you became friends. We’ve loved drinking beers with you.

We hope our beers brought you joy and brought you closer together. There’s no greater goal for a batch of beer or a project like ours.

After seven years it’s time to draw the curtains and head off to a new adventure. A poorly drawn grain of barley called Jack D’Or made this whole thing possible. He’ll be coming with us.

Besides making great beer, Dann’s thoughtful approach to everything they do has been great to watch, if only from afar. The few times we’ve spent any time together I’ve loved talking philosophically with him and certainly hope his voice won’t be lost as he transitions to whatever adventure awaits him in the next chapter of his journey. And I wish Dann and Martha the best of best wishes going forward.

Pretty Things beer will be available until it runs out, probably sometime in January of next year. If I were you, I’d stock up while you can.

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Their parting shot.

Why The Big Beer Companies Will Fail To Court Women

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Earlier this week, I read in AdAge that Budweiser Pulls Puppies From Super Bowl Ad Plans for the very sensible reason that they weren’t terribly effective. As AdAge notes, “as cute as they are, the puppies apparently don’t sell beer.”

I also read in Bloomberg that ABI was going to shift their advertising focus away from the male-dominated imagery that they’ve employed for decades, objectifying and alienating one-half of the world’s consumers, in an effort to win over female beer drinkers. “‘Objectification of women is going away,’ said Jorn Socquet, AB InBev’s vice president of marketing for the U.S.” in the Bloomberg article, What ‘Gender Friendly’ Ads Look Like to Big Beer.

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That strategy has created a demographic where only about one-quarter of women drink their beer, yet when they were riding high they didn’t seem to care at all how they treated the mothers, aunts, sisters, wives and girlfriends of the people who bought their beer. Despite loud and vocal criticism of those practices for years and years, only now that their sales are slipping have they seemed to have noticed and decided they should “win back women.” To do this, they’re going to air an ad during the Super Bowl “built around the idea that coming together over a frosty Bud Light can help solve the world’s problems, including unequal pay.”

But can one ad, or even a series of ads, undo decades of tone deaf ads that were, and continue to be, downright awful to women? And it’s not like things have gotten much better in the more enlightened 21st century. If anything, attacks on women have increased in politics, business and in the media.

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As The Atlantic wonders, Are TV Ads Getting More Sexist? and Business Insider notes that These Modern Ads Are Even More Sexist Than Their ‘Mad Men’ Era Counterparts. And more specific to beer, Vinepair makes a compelling case that 13 Sexist Beer Ads Show How Little Has Changed Since the 1950s. There’s an entire Tumblr devoted to Bad Beer Ads for Women. There’s no shortage of material to show that it’s not really gotten any better in my lifetime.

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But if corporations are people, they are people with convenient Alzheimer’s Disease. They’ll undoubtedly try to convince women that they’ve had this change of heart because it’s right thing to do (and even though it might be) but the truth is that it only has to do with profit. They’ll hope that no one will remember how bad, and how consistently sexist, their ads have been for decades upon decades, right up to the present day.

Fortune magazine weighed in with their take on the new plan, with how Beer Companies Are Courting Women, and here’s how you know that they don’t really get it and it will fail.

In order to win over women, the beer companies are designing more colorful packaging and creating sweeter drinks, like the Bud Lite Lime-A-Rita. But taste isn’t necessarily the problem — MillerCoors and AB InBev are focusing on the social aspect of beer, too.

I love how the big brewers always think that changing up the packaging is the way to woo customers. The idea that women will only respond to “more colorful packaging” and only want “sweeter drinks” is laughably naive and almost criminally insulting. And this is, remember, them trying to “court women,” a similarly insulting turn of phrase. How many times have we seen beer companies try fruitier, sweeter beers and pink packaging to entice women? How often has it worked? The now defunct Beer West magazine had a good overview of such failed attempts in Have You Really Come A Long Way, Baby? How beer is(n’t) marketed to women.

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To illustrate that it’s not just Anheuser-Busch InBev wearing blinders, MillerCoors’ senior marketing insights director Britt Dougherty opined that they’re “going through a feminization of culture” as a way of saying the days of “airing ads that objectify women” are over. I’ll believe it when I see it. I suspect that as soon as this doesn’t prove as successful as they want, they’ll return to the tried and true male-oriented advertising that’s been their bread and butter my entire lifetime.

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Sexism, perhaps more than any of the destructive -isms, makes no sense to me. I’m male, and it makes no sense. Why do so many men feel they have to keep down women? Every one of us has a female mother. Most of us have sisters, aunts, and daughters. Why would we ever want to keep them from succeeding? I know there’s at least some religious reasons for it, but even that can’t account for all of it. Why would you voluntarily keep you mother, wife or daughter from being able to climb as high as they want to in life? Why would you harass, objectify or otherwise insult every other female, just because they’re female? I honestly don’t understand it. How can you hate your mother? How can you hate your wife? How can you hate your daughters? Because hatred toward some women, by using sexism, objectification and other insults, is hatred toward all women, your own family included.

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And yet it seems to be rampant, and growing, in our society. It should be a thing of the past, a relic, but as Gamergate makes abundantly clear, there are males in our society who hate women to the point that they want to do them actual physical harm for saying things they don’t like, disagree with or just having an opinion. That seems nuts, but perhaps more confusing is that we don’t do more to put a stop to it as a society. Can there really be enough men who are deaf and blind to what’s happening, or do they secretly agree with them or just not give a shit so long as they’re on top of the perceived hierarchy? I have a daughter who I want to grow up in a world where she can do whatever she wants, follow every opportunity available to her and live her life to the fullest, exactly the same as her brother, my son, is able to do. And as it stands now, that seems like it’s too much for society to bear, that true gender equality remains as elusive as the end of racism. Why the fuck should that be the case? If we can’t even erase it from the beer industry, which ought to know better, what chance have we for the wider world? So while I think this is the right step for the big beer companies, they haven’t shown themselves to take any action except ones that help their bottom line. And while that is to be expected (being a problem with the institution of corporations) you’d like to think that even male executives have women in their lives that would make such decisions increasingly difficult, yet so far that remarkably hasn’t been the case.

Maybe if we celebrated our similarities — like enjoying beer — instead of pandering to our differences, that would be a good start. So yeah, let’s keep sexism out of beer advertising, out of beer culture and out of the breweries themselves. We’re all just people, beer-loving people.

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Craft Beer Product Segmentation 2015: A Tale Of Two Charts

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It was the best of charts, it was the worst of charts. So begins every great story. This made me laugh like the Dickens this morning, as fellow beer writer Bryan Roth tweeted a chart showing “Craft Production in the U.S.” apparently as of August 2015.

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The data comes from IBISWorld, a company that identifies themselves as “one of the world’s leading publishers of business intelligence, specializing in Industry research and Procurement research.” Their website shows that they have offices in Los Angeles, New York, Melbourne, London and Beijing, although the chart claims they’re “Chicago-based.” The report is entitled “Craft Beer Production in the US: Market Research Report,” and was published in August of this year. If you want to buy yourself a copy, it costs between $925 and $1,595, depending on which purchase option you choose.

Hopefully, the chart was not created by IBISWorld, because besides mis-identifying where the company is located, as Roth points out, “the graphic designer who created alternating sized circles not dependent on their % share is bad at their job.” It’s a terrible chart, on so many levels. First, why use “stencil” as the font for the title in the red center circle? Why are the outer circles different shades of blue, for no apparent rhyme or reason. There’s no discernible pattern to that decision. Bock is the lightest color, at 3.9%, followed by Amber Ale at 10.9%, so you might be tempted to think the color is dependent on market share, lighter for lower and darker for higher percentages. But no, fruit beer is the lowest, at 3.5%, and is medium blue, while Lager, at only 8.6%, is the darkest blue on the chart.

Why are the black lines not emanating from the center of the middle? Instead, it looks like one of the webs from the 1980s video game “Tempest.” They all meet in an outer ring, too, except for Bock and Wheat Beer, which are curiously left hanging. But most egregious, the size of the circles are not even close to being proportional to the percentages expressed in them. The sizes appear to be nothing more than random, just like the color choices. So at first glance, it makes no sense and is, at best, confusing. At worst, it looks like it was designed by a five-year old, and frankly that may be overly insulting to toddlers.

Carla Jean Lauter, better known by her nom nom de plume, The Beer Babe, was similarly bothered by the chart, but decided to do something about it. She “fixed” it, making the bubbles proportional to their market share so the chart is easier to read and better represents the reality it’s trying to convey. She also chose the colors of the bubbles to be representative of the beer color of each style, even choosing pumpkin color for seasonal. As Lauter tweeted when she posted her version of the chart, “I feel better now.” Weirdly, so do I. It’s so much better.

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The Big Brewers: Global Spread

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Looking for something else this morning, I found this map created by Reuters from 2013, showing the dominant beer company for each country, effectively showing “the global reach” of each of the four biggest companies at that time. This was created the last time rumors were circulating about an ABI takeover of SABMiller, in October of 2013.

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So I took the map and quickly replaced the teal of SABMiller with ABI blue to show what the global reach might look like post-buyout.

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And here’s a side-by-side comparison. There will be a lot more blue.

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SABInBev Will Control 6 Of 10 Best-Selling U.S. Beers

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According to a new report in Business Insider, the new entity combining Anheuser-Busch InBev and SABMiller will control six out of the ten best-selling beers in America, and it would have been eight, except the deal currently stipulates that “Molson Coors will take Miller off of SABMiller’s hands.” But I especially like the handy flowchart they created to show the evolution of the various companies that will come together to become SABInBev, or whatever they end up calling the new beer behemoth. Sadly, it looks like SABMiller, or what’s left of it, will simply be absorbed into ABI.

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Constellation Brands Buys Ballast Point

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Constellation Brands announced this morning that they will acquire Ballast Point Brewing & Spirits Company for roughly $1 billion. If you’re not familiar with Constellation, they’re “the number three beer company in the U.S. with high-end, iconic imported brands including Corona Extra, Corona Light, Modelo Especial, Negra Modelo and Pacifico. Constellation is also the world’s leader in premium wine, selling great brands that people love including Robert Mondavi, Clos du Bois, Kim Crawford, Rex Goliath, Mark West, Franciscan Estate, Ruffino and Jackson-Triggs. The company’s premium spirits brands include SVEDKA Vodka and Black Velvet Canadian Whisky.”

So far, almost all of the news about the deal is from the press release:

Constellation Brands (NYSE: STZ and STZ.B), a leading beverage alcohol company, today announced an agreement to acquire San Diego-based Ballast Point Brewing & Spirits. Ballast Point is one of the fastest growing craft beer companies in the U.S. with a beer portfolio that includes more than 40 different styles of beer, led by its popular Sculpin IPA and Grapefruit Sculpin IPA. The partnership with Ballast Point provides a high-growth premium platform that will enable Constellation to compete in the fast-growing craft beer segment, further strengthening its position in the highest end of the U.S. beer market.

Ballast Point started in 1996 as a small group of home brewers and remains dedicated to the art of making better quality craft beer. Ballast Point will continue to operate as a stand-alone company with its existing management team and employees running the day-to-day operations. The company is one of the most successful and respected craft beer companies in the country, with an expertise in brewing the most premium, highest quality award winning products, and a grassroots approach to innovation that engages beer lovers and home brewers in the process. The Ballast Point team will continue to build on its successful expansion across the U.S., and will now have access to Constellation’s strong financial position and willingness to invest in 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, founder of Ballast Point Brewing & Spirits. “To achieve that vision, we needed to find the right partner. 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.”

“We believe in the vision that Jack and his team have created and we’re excited to welcome Ballast Point, one of the most respected craft brewers in the country, to the Constellation Brands family,” said Rob Sands, chief executive officer, Constellation Brands. “Along with imports, craft beer is a key driver of growth and premiumization within the beer industry, with craft doubling its share of the U.S. beer market in the last five years. Ballast Point has certainly been a key driver of that growth. Their business philosophy and entrepreneurial spirit perfectly align with our culture and we look forward to strengthening our position in the high-end beer segment with what is arguably the most premium major brand in the entire craft beer business.”

Ballast Point is on pace to sell nearly 4 million cases in calendar 2015, which would represent growth of more than 100 percent versus calendar 2014. Net sales for calendar 2015 are expected to approximate $115 million. Volume and net sales growth from calendar 2012 to calendar 2014 averaged over 80 percent. Ballast Point employs more than 500 employees, produces beer in four facilities in the San Diego, CA area, and sells its beer in over 30 states.

Constellation Brands plans to purchase Ballast Point Brewing & Spirits for approximately $1 billion. The purchase price values the acquisition multiple of the projected calendar 2016 Ballast Point EBITDA in the mid-to-high teens range. Constellation estimates that on a comparable basis (1), the acquisition is expected to be neutral to diluted earnings per share for fiscal 2016 and $0.05 to $0.06 accretive for fiscal 2017. The transaction will be financed with cash and debt, and is expected to close by the end of calendar year 2015, subject to customary closing conditions.

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