San Diego’s Ballast Point to build brewery in Virginia

Constellation’s deep pockets. Not only did the beer-to-wine group Constellation splash out a record-breaking USD 1 billion for the San Diego-based craft brewer Ballast Point in November 2015, it has now agreed to invest nearly USD 50 million to establish an East Coast brewing operation in Roanoke, Virginia, a city of 100,000 people that is located 380 km southwest of Washington DC. This was announced on 24 May 2016.

Ballast Point began in 1996 as a back room brewery behind founder Jack White’s home brewing shop, Home Brew Mart. The company’s main production facility is in Miramar, San Diego, but it also has brewery locations in San Diego’s Little Italy and Scripps Ranch neighbourhoods.

The company has developed a wide portfolio of award-winning beers, including its signature Sculpin IPA. Last year, Ballast Point sold nearly 330,000 hl beer, up from 45,000 hl in 2013.

The impetus to expand with a large facility more than 2,000 miles away from San Diego was to meet demand on the East Coast. Virginia successfully competed against several Eastern states for the project. Specific production capacity figures at the new Virginia facility are still uncertain, though.

Already in March 2016, Deschutes Brewery from Oregon said it would open an East Coast brewery in Roanoke. The opening of both will bring over two hundred jobs to the region, Ballast Point predicts 178 and Deschutes said over 100.

Virginia is one of the leaders when it comes to the nationwide craft beer boom, according to the Brewer’s Association. It was one of four states that saw a net increase of more than 20 breweries in 2015.

In greater Richmond, Virginia’s capital, there will be 26 breweries opening in 2016, up from just four in 2013.

In 2015 Virginia had 124 craft breweries and craft beer retail sales increased almost 19 percent from 2014 to 2015, it was reported.