Constellation Brands buys Texas craft brewer Four Corners
Constellation Brands has acquired Dallas-based Four Corners Brewing Company for an undisclosed sum. This transaction, announced in early July 2018, underlines Constellation’s regional approach to US craft beer. It previously bought Florida’s Funky Buddha in 2017 and California’s Ballast Point in 2015 for a staggering sum of USD one billion.
Four Corners was founded in 2012. Last year, the brewery more than tripled its brewing capacity to nearly 30,000 hl. Co-founders George Esquivel, Greg Leftwich, and Steve Porcari will continue to lead day-to-day operations, it was reported.
Constellation Brands is the number three brewer in the US, thanks to brands like Corona Extra, Modelo and Pacifico. But it was forced to backtrack from its nationwide approach to craft beers. Recent trends have shown that it is easier to grow locally than nationally. This realisation came at a cost. In almost no time Constellation expanded Ballast Point’s availability to all 50 US states, yet sales growth did not live up to expectations and Constellation was forced to write down the carrying value of the brand by USD 86 million.
Therefore, Funky Buddha’s growth has been much slower. It is believed that the price tags for Funky Buddha and Four Corners were far lower than for Ballast Point.
