Constellation Brands said Monday it will purchase San Diego craft brewer Ballast Point Brewing & Spirits for $1 billion — a record in the growing craft beer industry.
Ballast Point was founded in 1992 as the Home Brew Mart in Linda Vista. It has grown to three locations in San Diego and produces some 40 beers as well as other beverages. It is expected to ship 40 million cases of beer this year.
The company had filed for an initial public offering before the purchase offer.
New York-based Constellation Brands’ beers include Corona and Modela and its wines range from Estancia to Wild Horse. It’s stock was up nearly 2 percent to over $134 Monday in trading on the New York Stock Exchange.
The deal signals that craft beer industry has arrived a a significant beer category, with a roughly 10 percent market share in the United States.
San Diego is one of the national centers of the craft beer industry, and more purchases of local breweries could be forthcoming.