SAN DIEGO (KGTV) — Alcohol giant Constellation Brands is bidding bon voyage to San Diego-born Ballast Point.
The company announced Tuesday it will be selling Ballast Point Brewing Company to Chicago-based Kings & Convicts Brewing Company for an undisclosed amount.
Under the terms of the sale, Kings & Convicts will acquire the Ballast Point brand and its various production facilities and brewpubs, including its Downtown Disney, Long Beach, Miramar, and Little Italy locations, and its newest brewpub in Chicago.
The new owner will also acquire Ballast Point's original homebrewing supply and tasting room in Linda Vista.
Kings & Convicts said it plans to keep Ballast Point's existing workforce, or about 560 employees, and to add a sales and marketing workforce.
“We’re excited to welcome the team at Ballast Point into the Kings & Convicts family,” said Brendan Watters, Kings & Convicts’ chief executive officer. “We have long admired the quality and spirit of Ballast Point’s brands and team. 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."
The sale is expected to close by the end of the 2020 fiscal year.
Craft beer fans will remember when Constellation Brands shelled out about $1 billion to buy Ballast Point in 2015, a move intended to position the company well in the quickly-growing craft beer market.
Since the purchase, Constellation Brands CEO Bill Newlands says the craft beer market has "shifted dramatically."
“Trends in the U.S. craft beer segment have shifted dramatically since our acquisition of Ballast Point,” said Newlands. “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.”
Newlands added that the sale allows Constellation to focus on its other brands and upcoming products, pointing specifically to a Corona-branded hard seltzer.