Kings & Convicts Brewing Co., Chicago, agreed to acquire the Ballast Point brand and a number of its associated production facilities and brewpubs, from Constellation Brands. The agreement doesn’t include Constellation’s Craft & Specialty operations in Daleville, Va. The transaction is expected to close by the end of Constellation’s fiscal 2020. Terms weren’t disclosed.
“Ballast Point’s best-in-class brewing standards will remain unchanged, delivering the same high-quality, award-winning products the company has become known for over the years,” said Brendan Watters, Kings & Convicts’ chief executive officer. “Our goal is to leverage Ballast Point’s deep know-how, talented and passionate employee base, and outstanding operating team to grow both Ballast Point and Kings & Convicts together.”
As part of this agreement, Kings & Convicts will retain all positions within Ballast Point’s existing workforce, with plans to hire additional resources to support the future growth of the business.
“Trends in the U.S. craft beer segment have shifted dramatically since our acquisition of Ballast Point,” said Bill Newlands, Constellation Brands president/chief executive officer. “Ballast Point remains one of the most iconic craft beer brands in the country and we’re pleased to transition the business to an owner that can devote the resources needed to fuel its future success.
“At the same time, this decision allows Constellation to focus more fully on maximizing growth for our high-performing import portfolio and upcoming new product introductions, including Corona Hard Seltzer, scheduled to launch this spring.”
Constellation said it expects to realize slightly improved depletion and margin trends for the beer business upon close of this transaction.