It wasn’t a question of “if,” it was just a question of “when” a mega-brewery would buy another craft brewery. Today was “when.”
Constellation Brands announced today the acquisition of its third craft brewery, Four Corners Brewing. The Texas brewery joins Ballast Point Brewing in San Diego and Funky Buddha Brewery in Florida to the Constellation craft portfolio.
Founded in 2012, Four Corners has been a quick growing company and currently sells about 11,500 bbls. According to a press release, the company has capacity to produce 25,000 barrels annually.
The purchase of Four Corners was a strategic one in a number of ways. The three states of California, Florida and Texas where Constellation now owns a craft brewery account for nearly half of all Constellation beers sales. Four Corners is also a cross-cultural craft beer brand, appealing to the Hispanic consumer, which fits nicely with Constellation’s Corona and Modelo brands.
Financial terms of the transaction were not disclosed.
Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading beverage alcohol company, announced today its purchase of Four Corners Brewing LLC (“Four Corners”), reinforcing its strategy to lead the high-end in the U.S. beer market. Grounded in Texas roots and heritage, this high-performing, dynamic and bicultural (Hispanic and American) brand produces beer that’s refreshing, big on flavor and complements Constellation’s existing portfolio. With flagship brands like Local Buzz Honey-Rye Golden Ale and El Chingón IPA, Four Corners will join Constellation’s Craft & Specialty Beer Group.
Four Corners was founded in 2012 by longtime friends George Esquivel, Greg Leftwich and Steve Porcari, who set out to create a Dallas brewery that would elevate their hometown and revitalize their city’s neighborhoods. Four Corners brews an entire portfolio of authentic, delicious and sessionable beers accompanied by one-of-a-kind branding inspired by their Oak Cliff roots.
Four Corners’ standard of brewing will remain unchanged because the existing management team made up of Esquivel, Leftwich and Porcari, along with their current employees, will continue delivering the same innovative and fresh flavors consumers enjoy today.
“We like to say that Four Corners Brewing is our collective beer journey, and partnering with Constellation continues that journey by opening amazing possibilities of where our brand and company can go,” said Four Corners co-founder George Esquivel. “We’re proud Texas brewers, and we’ve always had intent of sharing our brews and our story with as many people as possible. We know Constellation Brands is the right partner to help us do that.”
Sales have grown five-fold since 2014, and the brewery expanded capacity from 8,000 barrels in 2016 to 25,000 barrels in 2017. Four Corners has won multiple local awards in their short history for both brewing and branding. Most notably, the Four Corners team won D Magazine’s 2015 Editors’ Choice Award for Best Brewery. The brewery was also awarded top honors from The Dallas Society of
Visual Communications in 2015 winning gold for packaging design and gold for Judge’s Choice.
“Four Corners brings a culture that mixes adventure and innovation with elements of heritage and tradition,” said President and Chief Operating Officer Bill Newlands, Constellation Brands. “It’s a compelling opportunity for Constellation because Four Corners’ bicultural inspired flavors and branding capitalize on one of the hottest trends in beer – Hispanic influenced products. George, Greg and Steve have created beers that are big on flavor, refreshing and pair well with bold Texas cuisine, while creating a brand that embraces and reflects the diversity of its people. We’re excited to help them take the brand further.”
Constellation Brands and Four Corners’ team of employees will work together, with its cofounders, running the day-to-day operations. Terms of the transaction were not disclosed.