{"id":171,"date":"2015-11-17T19:04:34","date_gmt":"2015-11-17T19:04:34","guid":{"rendered":"http:\/\/cpamorey.com\/blog\/?p=171"},"modified":"2015-11-17T19:04:34","modified_gmt":"2015-11-17T19:04:34","slug":"craft-brewery-sells-for-1-billion","status":"publish","type":"post","link":"https:\/\/cpamorey.com\/blog\/craft-brewery-sells-for-1-billion\/","title":{"rendered":"Craft Brewery Sells for $1 Billion"},"content":{"rendered":"<p><a href=\"http:\/\/cpamorey.com\/blog\/wp-content\/uploads\/2015\/11\/Ballast-Point.png\"><img decoding=\"async\" loading=\"lazy\" class=\"alignright size-medium wp-image-172\" src=\"http:\/\/cpamorey.com\/blog\/wp-content\/uploads\/2015\/11\/Ballast-Point-252x300.png\" alt=\"Ballast Point\" width=\"252\" height=\"300\" \/><\/a>When a craft brewery sells for <strong>$1 billion dollars<\/strong>, then you realize that it\u2019s no longer a tiny niche business.<\/p>\n<p>Craft beer accounted for 11% of U.S. beer sales in 2014 and market share is rapidly increasing in 2015. Just this week, the owner of Corona and Modelo, <a title=\"Craft Brew Acquisition\" href=\"http:\/\/www.techtimes.com\/articles\/107698\/20151117\/1-billion-how-much-constellation-brands-spends-to-snag-craft-brewer-ballast-point.htm\" target=\"_blank\">Constellation Brands, purchased Ballast Point for roughly $1 billion<\/a>.<\/p>\n<p>Ballast Point started selling beer commercially in 1996 and growing at a rate of 80% over the past two years. According to Brewer\u2019s Assn, it is the 31st largest craft brewer in the country. Ballast Point is available for sale in 30 states and Sculpin IPA is their hot seller. Overall, Ballast Point produces approximately 300,000 barrels annually and the sale does not include Ballast Point Spirits, which makes rums and whiskeys.<\/p>\n<p><a href=\"http:\/\/cpamorey.com\/blog\/wp-content\/uploads\/2015\/11\/Ballast-Sculpin.png\"><img decoding=\"async\" loading=\"lazy\" class=\"alignleft size-full wp-image-173\" src=\"http:\/\/cpamorey.com\/blog\/wp-content\/uploads\/2015\/11\/Ballast-Sculpin.png\" alt=\"Ballast Sculpin\" width=\"209\" height=\"290\" \/><\/a>To put this into perspective, Constellation Brands will be paying 20 times Ballast\u2019s revenue in 2014. And if Ballast\u2019s revenue increases 100% in 2015, then the <a title=\"Business Valuation on Craft Brew Acquisition\" href=\"http:\/\/www.latimes.com\/business\/la-fi-ballast-point-beer-deal-20151116-story.html\" target=\"_blank\">multiple is 10 times revenue<\/a>, which is still a stiff premium.<\/p>\n<p>And while demand for craft brews explodes, demand for watered down national brands like Bud, Miller, and Coors is flat which is creating a trend towards consolidation. For example, AB InBev\u2019s takeover of SABMiller for $107B.<br \/>\nWhile the acquisition of craft brews is nothing new, the valuation on this purchase is eye opening.<\/p>\n<p>Morey &amp; Associates is an <a title=\"Orange County CPA Firm\" href=\"http:\/\/www.cpamorey.com\/\" target=\"_blank\">Orange County CPA Firm<\/a> that works with business owners that would like to eventually sell their business for $1B or more.\u00a0 If you are searching for an accountant during your next growth phase, call <strong>949-759-5626<\/strong> and ask for <strong>Jerry Morey<\/strong>.\u00a0 Our initial consultation is free.\u00a0 Our offices are conveniently located in <a title=\"Newport Beach CPA Accountants\" href=\"http:\/\/www.cpamorey.com\/\" target=\"_blank\">Newport Beach<\/a> and <a title=\"San Clemente CPA Accounting Firm  \" href=\"http:\/\/www.cpamorey.com\/\" target=\"_blank\">San Clemente<\/a>.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When a craft brewery sells for $1 billion dollars, then you realize that it\u2019s no longer a tiny niche business. Craft beer accounted for 11% of U.S. beer sales in 2014 and market share is rapidly increasing in 2015. Just this week, the owner of Corona and Modelo, Constellation Brands, purchased Ballast Point for roughly [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[],"tags":[],"_links":{"self":[{"href":"https:\/\/cpamorey.com\/blog\/wp-json\/wp\/v2\/posts\/171"}],"collection":[{"href":"https:\/\/cpamorey.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cpamorey.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cpamorey.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/cpamorey.com\/blog\/wp-json\/wp\/v2\/comments?post=171"}],"version-history":[{"count":1,"href":"https:\/\/cpamorey.com\/blog\/wp-json\/wp\/v2\/posts\/171\/revisions"}],"predecessor-version":[{"id":174,"href":"https:\/\/cpamorey.com\/blog\/wp-json\/wp\/v2\/posts\/171\/revisions\/174"}],"wp:attachment":[{"href":"https:\/\/cpamorey.com\/blog\/wp-json\/wp\/v2\/media?parent=171"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cpamorey.com\/blog\/wp-json\/wp\/v2\/categories?post=171"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cpamorey.com\/blog\/wp-json\/wp\/v2\/tags?post=171"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}