Is “Beer” The New “Tech”? Craft Brewer Sells For $1 Billion Dollars
The company that makes Corona and Modelo Beers is buying a craft brewer for $1 billion dollars. This is causing some to wonder if there isn't a beer "bubble" phenomenon being created similar to the tech bubble of the 1990's, and subsequent crash.
Constellation Brands, the company that makes Corona Extra and Modelo Especial, is buying craft brewer Ballast Point Brewing & Spirits of San Diego, CA, for $1 billion dollars. Financial experts believe this price is based on potential, akin to tech acquisitions
in the 90's. After many of these companies failed to perform, it was said the tech bubble burst, and the financial tech sector crashed.
But there's a lot of money in beer. Witness the explosion of craft breweries in Michigan alone. Major brands of beer are not growing. So the big companies are buying the smaller ones. The company that owns Budweiser is buy the maker of Miller. But that has to be approved by the government.
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