Constellation relaunches some Ballast Point brands at lower prices

You’d think the number three brewer in the US, Constellation Brands, would have done the research before paying USD one billion for San Diego craft brewer Ballast Point.

Following a proprietary (and probably highly expensive) review of the craft beer segment, and its own positioning within it, Constellation Brands has re-launched a number of its Ballast Point offerings with a new look in an attempt to “tell its story more effectively” to consumers.

In an interview with Brewbound, Constellation’s top brass said the survey will help Constellation better understand consumer-purchasing behaviour, as well as provide the company with some key takeaways that will help shape its overall craft strategy moving forward.

In formal interviews with craft beer drinkers – those who were solicited for the study as well as patrons that visited Ballast Point’s eight tasting room locations across the US – Constellation discovered that 58 percent of craft consumers prefer to drink beers that range between four percent and six percent ABV.

The company also learned that two-thirds of US craft beer drinkers, when presented with a list of ten brands, were unfamiliar with Ballast Point. What’s more, it found that 80 percent of drinkers were unaware of the company’s Sculpin IPA offering.

Using those insights, Constellation decided to rebrand its more “approachable” offerings – Even Keel Session IPA, Bonito Blonde, Longfin Lager, Grunion Pale Ale – so that they stand out from the flagship Sculpin IPA and all of its flavour variants. It also repositioned Fathom India Pale Lager as an “easy drinking” West Coast-style IPA that checks in at six percent ABV.

According to the survey, when buying craft beer, consumers first look for national, regional and local brands. But next they look at IPAs because IPAs are part of the structure of how craft beer drinkers buy craft beer.

Constellation plans to “lead” with Fathom IPA because 75 percent of craft dollar growth is coming from the IPA category.

All of the beers in the “discovery series” will be priced between USD 9.99 and USD 10.99 per six-pack, a spot where 50 percent of category growth is coming from.

In effect, Constellation is launching these Ballast Point beers at a lower entry price and in a price bracket where most US craft beers are located. It then hopes to trade consumers up to the pricier Sculpin IPA, which retails for USD 14.99 or more.

Strange that it took them almost two years to notice that what has stood in the way of Ballast Point sales living up to Constellation’s heady projections was Ballast Point’s high price point.