Is Constellation Brands Throwing in the Towel on Craft Beer?
It was clear to many people at the time that Constellation Brands (NYSE: STZ) vastly overpaid for Ballast Point Brewing when it acquired the regional craft brewer for $1 billion in 2015. And now, the company is selling Ballast Point off at a presumed significant discount.
Although there are still two other craft brewers in Constellation's beer portfolio, along with its families of Mexican beer, Corona and Modelo, it wouldn't be surprising to see the brewer also shed Funky Buddha and Four Corners eventually, despite management's assurances.
Constellation Brands' misreading of the beer market with the Ballast Point deal could signal the beginning of the end of its foray into craft beer.
Source Fool.com
