Artisans, Hipsters, and Suits
Earlier this month, consumer packaged-goods giant Nestle SA (NASDAQOTH: NSRGY) announced a deal to snap up a controlling stake in upscale coffee-purveyor Blue Bottle Coffee Company for a sum reported to be near $500 million. The deal follows Constellation Brand's (NYSE: STZ) acquisition of rapidly growing Florida craft-beer brewer Funky Buddha Brewery in August, also for an undisclosed amount. If Constellation's $1 billion acquisition of west coast craft-beer pioneer Ballast Point Brewery in late 2015 is any indication, Funky Buddha's owners were well compensated for their shares.
The owners of Blue Bottle plan to stay on board and help guide the introduction of their products to a much wider audience. While one can hardly blame entrepreneurs for cashing in equity at a handsome valuation, news outlets have reported that some patrons of both Blue Bottle, like the customers of Funky Buddha before them, are nonetheless crying foul.
Image source: Getty Images.
Source: Fool.com
Constellation Brands Inc. Stock
The stock is an absolute favorite of our community with 35 Buy predictions and no Sell predictions.
As a result the target price of 283 € shows a positive potential of 24.4% compared to the current price of 227.5 € for Constellation Brands Inc..
