Ballast Point now in the bag...

[bob1852]

While I am happy for the owners it will be bad for craft breweries in general. Can you imagine trying to compete for shelf space/tap handles against Lagunitas (Heineken), Goose Island (AB), Golden Road (AB), and now Ballast Point (Constellation). Due to the economy of scale they can cut their margin down to close to nothing and still make money. Imagine walking into a bar and Sculpin is three bucks a pint...... A small brewer can't do that and survive.

I don't know about where you are, but where I am - beer diversity at bars and in stores has never been higher.

I'm just not seeing this shelf space competition everyone is talking about. What I'm seeing is 2-3x MORE shelf space to accommodate all of the different brands out there (most of which is the result of increased distribution due to either the big breweries buying up smaller breweries, or the big breweries consolidating distributional lines).

The best time in the history of beer in America is NOW!

 

[Paps]

At the local Wal-Mart grocery store (where i'd bet the bulk are buying their beer from)
It's 90% plus inbev products.
B-M-C check
B-M-C with a different name/label check
the only non B-M-C items i can think of that they have are Boulevard beers, Sam Adams, & StrongBow Hard Cider.

 

[murphyslaw]

I don't know about where you are, but where I am - beer diversity at bars and in stores has never been higher.

I agree. My local grocery store sells bud, bid light, bud lime, something called "strawbeerita", goose island, blue moon, shock top, kona, red hook, bass, magic hat, Leinenkugel, bass, becks, boddingtons, michelobe, natty light, rolling rock, Stella, spaten, st pauli girl, widmer, omission....the diveristy is fantastic.

goose island is really the only on one that list that interests me, though. I just cant figure out why they stock so many mediocre brands to the exclusion of so many other great craft breweries.....

 

[V1nny]

It has to be only a few months ago that Stone and Ballast Point were equal in price, and because I liked sculpin more, I would buy that when given the option. At $17 after taxes, I almost never buy any ballast point beers in the store. I like to search for ones ive never tried but if im in a store with lagunitas, stone and ballast. ill go for the cheaper option knowing theyre all good.

I dont know why their prices have surged recently but 25 cents an ounce is pushing it when i can buy and equally good beer for half that.

 

[JKoravos]

They rpobably raised prices to probe out their high end appeal for the eventual buyout. Any brand that can maintain sales at high end prices plus volume will be ripe for a buyout.

 

[govner1]

I can't imagine walking into a bar and seeing *any* beer for $3 a pint. Haven't seen prices like that in over a decade...and it's hard to find a beer for that price even during happy hour, never mind a decent one!

I drank Sculpin at my local Brixx last night for $1.95/ pint! In fact, all the draft pints were $1.95.

 

[JKoravos]

It's been a while since i've seen anything half decent for less than $5/pint. $6-7 is much more common around here for something like Sculpin.

 

[grizzly2378]

I keep hoping all these acquisitions lead to me being able to buy some of these beers in South Dakota. So far, no such luck, other than Goose Island.

As I saw posted on Twitter, if Ballast Point is worth $1 billion, how much is Sierra Nevada or New Belgium worth???

 

[Calichusetts]

Just remember that a majority of the price of the beer you get in a store has nothing to do with the brewery. Over 50% of the cost is that of retail and distribution. Most bars are upping the price 5-6 times what they got it for.

Everytime prices go up, people get made at the brewery, when 99% of the time, its not on them. Packaging, on the other hand, is a way that breweries can increase price in a more subtle way. Often going from 6-packs to 4-packs.

 

[hunter_le five]

Just remember that a majority of the price of the beer you get in a store has nothing to do with the brewery. Over 50% of the cost is that of retail and distribution. Most bars are upping the price 5-6 times what they got it for.

Everytime prices go up, people get made at the brewery, when 99% of the time, its not on them. Packaging, on the other hand, is a way that breweries can increase price in a more subtle way. Often going from 6-packs to 4-packs.

Our establishments typically charge a 3-4X markup for beer and 3X wine, and that's cheaper than what a lot of the other places around here are charging.

 

[Baja_Brewer]

A billion dollars?! That seems like a massive over evaluation of Ballast Point who is largely a one trick pony IMO.

Seriously. Knowing nothing about their cash flow aside from the fact that they must just be raking it in @$15-16/6-pack (retail, post distribution - I know, I know) I'd still be laughing all the way to the bank with a $1b check in my hand.

 

[smcinco]

I keep hoping all these acquisitions lead to me being able to buy some of these beers in South Dakota. So far, no such luck, other than Goose Island.

As I saw posted on Twitter, if Ballast Point is worth $1 billion, how much is Sierra Nevada or New Belgium worth???

Not to try to rationalize the price, which I think is crazy, but I don't think they would appeal to the same buyer. Ballast Point is a much more premium brand. I would equate those two to Lagunitas, which definitely did not achieve a 20x sales valuation.

In any event, having been in the Home Brew Mart 20 or so years ago when they were setting up the initial BP system, I am really gratified to see them find such a stupid buyer.

 

[MaddBaggins]

A billion dollars?! That seems like a massive over evaluation of Ballast Point who is largely a one trick pony IMO.

One trick pony? Hardly.

 

[JKoravos]

I keep hoping all these acquisitions lead to me being able to buy some of these beers in South Dakota. So far, no such luck, other than Goose Island.

As I saw posted on Twitter, if Ballast Point is worth $1 billion, how much is Sierra Nevada or New Belgium worth???

Boston Beer Co is traded publicly. They have market cap of ~$2.8 Billion. That should give you a rough idea of what SNBC and New Belgium are worth.

 

[aprichman]

One trick pony? Hardly.

Personally I don't think ANY of their beers are outstanding and outside of their "fruit juice" IPAs I rarely see their beers at bottle shops or bars.

 

[sd_brewbie]

Having lived in San Diego most of my life I guess I am really spoiled by our selection of beer. The large number of breweries and selection in our stores is amazing. I generally prefer to find the smaller breweries. While I might enjoy Ballast Point beer from time to time Ballast Point is too huge for me to enjoy as my regular watering hole. I have a few places where I can walk in, they know my name and I can chat with the owners/brewers.

Ballast Point has 4 tasting rooms here and while the newer location in Miramar is cool, it is big and crowded. I do enjoy Ballast Point's Home Brew Mart which is a their original location and also a home brew store (though I prefer the homebrewer for my supplies). Ballast Point does run their experimental brews out of Home Brew Mart and you can find beers that you won't find at their other locations to those thinking Sculpin is the only good thing they got going.

I don't think their sale will be a problem. If they do drive Ballast Point into the ground (and I doubt that will be the case) there are plenty of other great breweries here in San Diego.

 

[GilaMinumBeer]

One trick pony? Hardly.

Ballast Point doesn't distribute here. Turns out they do have a huge lineup. That no-one says anything about.

All anyone talks about is the degrees of Sculpin.

 

[seefish]

The prices will never go down, unless they decide to cut corners. Likely in some cases the prices will go up. Goose Island has been slowly raising Bourbon County prices since bought by AB-Inbev and have stopped selling 4-packs. The benefit being that they now have a ginormous barrel house and filled 4500 barrels with bourbon county alone.

 

[Grannyknot]

I see the ridiculous purchase price is proportional to their ridiculous beer prices.

 

[QuadConPana]

I'm happy.

Ballast Point is a good enough brewery, that it will be great to be able to buy Sculpin at the grocery store. But, it's not like they're DFH or Stone. It won't be all that earth shattering if they end up losing a little bit of craft mojo.

I will say, though that I looked at some of their new owners wine holdings. They own Arbor Mist and Wild Irish Rose on one end, and Ravenswood and Clos du Bois on the other. If those can coexist, then so can Ballast Point and Corona.

 

[Jwin]

This is the new American Dream. Start small comapany, grow small company into larger company, sell successful large company to corporation for 2-4x it's value. Buy awesome car.
Props to BP, hoping I see sculpin in TN soon.

 

[Talgrath]

So...craft beer bubble? Craft beer bubble. So when does it burst? Any bets?

 

[flars]

Together??

 

[Homercidal]

I don't think now is the time to complain about how little selection there is in the craft beer market.

Those folks who care about WHO they buy their beer from, as much as WHAT they buy, can still find quality craft beer if they refuse to do business with a Big Brewer.

It's not as though there isn't a TON of other craft brewer out there.

And, lest we all forget; we're HOMEBREWERS!

 

[Konadog]

So...craft beer bubble? Craft beer bubble. So when does it burst? Any bets?

About the same time everyone stops drinking beer!

I don't see this ever happening. Things may slow down, but go back to BMC........ never.

 

[MaddBaggins]

Personally I don't think ANY of their beers are outstanding and outside of their "fruit juice" IPAs I rarely see their beers at bottle shops or bars.

Interesting, I think they're one of the tops out of San Diego (that I can get locally). I like them far better than Stone any day. I've had at least a dozen different beers from them and only one I thought was meh. That was Even Keel session IPA, but I'm sort of biased against session IPA's. I really don't like any of them.
Among some of my favorite beers:

Victory at Sea
Sea Monster
Dead Ringer
Grunion
Dorado
Big Eye
Indra Kunindra
and yes, Sculpin which IMO is their only really fruity IPA.

 

[MaddBaggins]

Ballast Point doesn't distribute here. Turns out they do have a huge lineup. That no-one says anything about.

All anyone talks about is the degrees of Sculpin.

Sculpin is good, but there is so much more and better from them.

This deal may actually bring some of their spirits into Tucson. I hear good things about them. We get a lot of their beer here and I really dig their stuff.

 

[MaddBaggins]

I'm not sure what kind of pricing is elsewhere in the country, but the only BP beer I find high priced is Sculpin. Everything else I've seen and purchased has been right in line with pretty much any other good brewery.

 

[GarageDweller]

will never understand why so many people get emotionally involved in some company's internal business practices. drink your beer and STFU!

 

[zman]

will never understand why so many people get emotionally involved in some company's internal business practices. drink your beer and STFU!

Probably the same reason they do with sports, politics, and religion

 

[KeninMN]

We get Ballast Point here in the Land of Ice and Snow, and pay between $9 - $13 plus tax for a six pack, depending on the variety. Grapefruit Sculpin is my favorite, and Northern Brewer's clone kit (Grapefruit Pulpin') is dead on. It's still cheaper than 3Floyds, for which I usually pay $18 for a six pack in Chicago or Indiana whenever I travel there...

 

[aprichman]

Ballast Point sells for $10-15/6-pack in Oregon

 

[JKoravos]

I'm not sure what kind of pricing is elsewhere in the country, but the only BP beer I find high priced is Sculpin. Everything else I've seen and purchased has been right in line with pretty much any other good brewery.

My local sells 4-5 types of BP; Sculpin, GF Sculpin, Even Keel, Grunion, and one other. All $14.69/6. This is one of the lower priced shops in my area, I'm guessing it's priced higher at the higher traffic bottle shops.

I don't think anything else is more than $12.99/6, outside of some high gravity stuff, IIIPAs, RISs, etc.

 

[Phunhog]

I don't think now is the time to complain about how little selection there is in the craft beer market.

Those folks who care about WHO they buy their beer from, as much as WHAT they buy, can still find quality craft beer if they refuse to do business with a Big Brewer.

It's not as though there isn't a TON of other craft brewer out there.

And, lest we all forget; we're HOMEBREWERS!

I agree that there is a ton of craft brew out there but maybe not in a good way. Here is what I mean. When I go to my local grocery store they have a half an aisle devoted to nothing but beer. Of that it is probably split 50/50 craft/macro. The 50% craft beer part is probably 85% dominated by Stone, Firestone Walker, New Belgium, Sierra Nevada, Lagunitas, Deschutes and Ballast Point beers. The rest of the craft beer is rounded out by the odd imported six pack and a few bombers from the local brewery. Now I can only imagine that same scenario is playing out across the nation. There is a reason why so many breweries are starting satellite breweries on the east coast. More distribution!!

 

[passedpawn]

This is the new American Dream. Start small comapany, grow small company into larger company, sell successful large company to corporation for 2-4x it's value. Buy awesome car.
Props to BP, hoping I see sculpin in TN soon.

Haha, my thoughts too. I feel really good for the people who become zillionaires. $1B, that's a big number.

I don't know why, but I don't care a bit when Goose Island or Ballast Point or whatever gets bought. Not 1 little care. When Russian River and Cigar City get bought by Red Stripe, don't care at all. The beers are always still there after the acq. And if they are not, meh, I've got 4 taps here always flowing.

I was unmoved by Beer Wars. Completely.

The only one that kinda bugged me was when Bud was acquired by foreign company. Bud was Americana.

 

[slym2none]

Interesting - the grocery stores in my area have one side of an entire aisle for beer. 50/50 between BMC and craft. The craft sections have Stone, Lagunitas, Great Lakes, Shiner, Bell's, New Belgium, Sierra Nevada, Brooklyn Brewery, SamAd, Guinness/Harps, Goose Island, some locals like Red Oak & Carolina Brewing Company... and that's what I can remember, plenty I have forgotten. If any one brand dominates, it's New Belgium and/or SamAd, but I wouldn't call it "dominating".

 

[Paps]

Wild Irish Rose.

:barfs:

You just brought back memories from high school days.
That garbage was like $1.25 a bottle back then
(yes, i'm old)

 

[beergolf]

Haha, my thoughts too. I feel really good for the people who become zillionaires. $1B, that's a big number.

I don't know why, but I don't care a bit when Goose Island or Ballast Point or whatever gets bought. Not 1 little care. When Russian River and Cigar City get bought by Red Stripe, don't care at all. The beers are always still there after the acq. And if they are not, meh, I've got 4 taps here always flowing.

I was unmoved by Beer Wars. Completely.

The only one that kinda bugged me was when Bud was acquired by foreign company. Bud was Americana.

This nails it perfectly. Who really cares? If the beer is still goood buy it. If it is not then don't. There are thousands of breweries out there, plus your own home brew.

Actually when Goose Island was bought I was bummed, but it seems like they gave the brewer more freedom to do brews like Sophie and Matilda and not have to pump out the average stuff that makes the bucks. Let the big boys make the average beers. They are good at that. Let the good brewers make good beer.

 

[JKoravos]

Same here. The grocery stores carry a lot of local beers. Sure there's more BBC and SNBC than the little guys, but there are plenty of little guys.

 

[C-Rider]

So no matter how much I liked my job, company if someone offered me 1 billion dollars for it and I got to keep like 1/2 of that I'd sure as hell sell and buy me an island somewhere warm in the Pacific and RETIRE. LOL.