This week brought about two big moves in the food and beverage sector.
Alcohol beverage giant Constellation Brands, Inc. (NYSE: STZ) sold its craft beer Ballast Point brand and associated production facilities, while PepsiCo, Inc. (NASDAQ: PEP) bought PopCorners maker BFY Brands.
Constellation Sheds Struggling Asset Ballast Point
Constellation bought Ballast Point Brewing & Spirits in 2015 for $1 billion but shed the asset after two consecutive years of declines. Constellation tried and failed to grow the craft beer brand and recorded close to $200 million in impairment charges in 2019 and 2017.
Constellation is cutting its losses and the math behind its acquisition equates to around $3,500 per barrel. The new owner, relatively unknown Kings & Convicts Brewing, has been in talks with Constellation to close a deal since late July.
"I sat down with one of the Constellation guys and I just made an offer," Kings & Convicts CEO Brenadan Watters told Fortune. "I went headlong into it, and tried to get it before anyone else."
PepsiCo Expands Snack Lineup With PopCorners
BFY Brands was launched in 2008 and offers a portfolio of healthier snack options, including PopCorners and Flourish Veggie Chips. The acquired brands will transition to PepsiCo's Frito-Lay North America division and will play a role in the company's "Winning with Purpose vision" to better offer consumers healthier food choices.
"BFY Brands offers distinctive products that deliver the great taste and ingredients consumers are looking for," said Steven Williams, CEO, PepsiCo Foods North America said in a press release. "Their production capabilities will support the growth of our existing, more-nutritious snack brands."
Hershey Bolsters Nutritious Snack Lineup With Acquisition Of ONE Brands
Pretzel Pop-Tarts Are Almost Here
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