Was Constellation Brands' Craft Beer Strategy a Bust?
The company's big bet on Ballast Point Brewing hasn't really paid off as expected.
By Rich Duprey
The big bet Constellation Brands (NYSE:STZ) made in craft beer looks like it's going awry. Having jumped into the industry with both feet and a $1 billion acquisition of Ballast Point Brewing in 2015, the owner of the U.S. based-rights to sell Corona beer has only seen its craft beer ambitions deflate, and it's even had to take impairment charges on its investment.

Now, hidden beneath the recent announcement of its massive $4 billion investment in Canadian marijuana grower Canopy Growth, industry news site Beer Street Journal says the brewer and distiller has fired as much as 60% of its craft beer sales team and folded the remnants into its imported beer division. Constellation Brands isn't throwing in the towel on craft beer -- it recently announced it was building its 10th Ballast Point brewpub -- but it's clear it sees that its priorities now lie elsewhere.

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