New Belgium Brewing, the US beer maker owned by Japan’s Kirin Holdings, has struck a deal for a Constellation Brands production facility.
The Voodoo Ranger brand owner is to acquire Constellation’s brewery in Daleville in the US state of Virginia.
Go deeper with GlobalData
The financial terms of the deal, which is expected to be completed in May, were not disclosed.
A co-packing agreement was revealed. As well as using the brewery to produce beers including Voodoo Ranger Juice Force IPA, New Belgium Brewing will also manufacture Constellation brands including Fresca Mixed.
In a statement, New Belgium Brewing said it will also “explore ways to leverage the facility’s FMB, seltzer and RTD capabilities, which provide new avenues to expand the company’s legacy of innovation”.
In December, Kirin CEO Yoshinori Isozaki told Reuters the company was eyeing up additional production in North America amid growing sales of its craft beer.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataNew Belgium Brewing has production facilities in Fort Collins, Colorado and in Asheville, North Carolina. The company also has a taproom and pilot brewery in San Francisco and owns Bell’s Brewery in Kalamazoo, Michigan.
Steve Fechheimer, the brewer’s CEO, said today (23 March) the company was “confident this facility and its local team will help us fuel our growth for the foreseeable future”.
He added: “For a company growing as fast as New Belgium, there’s no challenge more urgent than boosting our ability to make enough beer to meet growing demand.”
New Belgium Brewing described itself as “the largest and fastest-growing US craft brewery”. The company says it became the biggest craft brewery by sales volume in the US when it acquired Bell’s Brewery in 2021.
Asked what New Belgium Brewing’s sales and profits were in the company’s last full financial year, a spokesperson said: “We shipped 1.226 million barrels in 2022, the company’s best shipment volume year ever. Among top breweries, no other had a higher percentage growth than we did in 2022.”
The 60 staff who work at the Daleville site, which was built in 2017, will be offered the opportunity to stay on.
Jim Sabia, the president of Constellation’s beer division, said: “One of the keys to our success is bringing a focused and disciplined approach to our beer business, making key strategic pivots when the circumstances warrant it.”
In the three months to 30 November – Constellation’s fiscal third quarter – the company reported a 6% rise in net sales from beer, hitting US$1.89bn. The operating income from the division dipped 2% to $710m amid higher raw-material costs.
Constellation is set to report its annual financial results on 6 April.
Just Drinks analysis: The changing flavour of US craft-beer M&A
