The unraveling of Ballast Point, and Constellation’s craft portfolio, took another tuff turn, as co made several moves to “adapt” cost structure amid “declining sales volume,” Constellation told Ballast employees. Constellation will close its Temecula brewpub and Trade Street brewery (sour and barrel-aged facility located next to Miramar brewery) and “pause plans” for any new Ballast brewpubs. It also will “halt” future “broad-based” brand intros. As part of this, Constellation will “more fully integrate” Craft & Specialty unit with larger Constellation Beer Brands Division unit, with exception of craft home mkts – SoCal (Ballast), FL (Funky Buddha) and TX (Four Corners). Those will continue to have dedicated sales support. Altogether, these decisions will result in another round of layoffs, co acknowledges.
This comes shortly after Constellation took a 2nd impairment charge on Ballast Point, bringing total “impairment” charges to near $200 mil since its $1-bil purchase of Ballast. Plus, co sold off its Scripps Ranch facility to upstart hard kombucha co, JuneShine, earlier this yr. While “necessary” to “scale down” costs, such decisions “never easy.” Co hopes to “quickly” make adjustments and work with “impacted employees” to help them get to other oppys either inside or outside co.