Constellation Brands' Latest Craft Beer Buy Should Worry Investors
Constellation Brands (NYSE: STZ) just made its second craft beer acquisition, but probably won't begin buying up breweries to the same degree as Anheuser-Busch InBev (NYSE: BUD). Although the price paid also likely wasn't anywhere near the $1 billion it dropped on Ballast Point Brewing two years ago, it indicates the pace of craft brewery acquisitions might not abate anytime soon, and investors may not like the trend it portends.
The spirits, beer, and wine distributor purchased Florida-based craft brewer Funky Buddha Brewery for an undisclosed sum in early August, but noted it was both the largest microbrewery in south Florida by sales and volume as well as the fastest-growing craft beer in the state. At 54,000 square feet with a capacity of 45,000 barrels, Constellation says Funky Buddha is also Florida's busiest tap room by beer sales.
Image source: Funky Buddha Brewing.
Source: Fool.com