Artisans, Hipsters, and Suits
Earlier this month, consumer packaged-goods giant Nestle SA (NASDAQOTH: NSRGY) announced a deal to snap up a controlling stake in upscale coffee-purveyor Blue Bottle Coffee Company for a sum reported to be near $500 million. The deal follows Constellation Brand's (NYSE: STZ) acquisition of rapidly growing Florida craft-beer brewer Funky Buddha Brewery in August, also for an undisclosed amount. If Constellation's $1 billion acquisition of west coast craft-beer pioneer Ballast Point Brewery in late 2015 is any indication, Funky Buddha's owners were well compensated for their shares.
The owners of Blue Bottle plan to stay on board and help guide the introduction of their products to a much wider audience. While one can hardly blame entrepreneurs for cashing in equity at a handsome valuation, news outlets have reported that some patrons of both Blue Bottle, like the customers of Funky Buddha before them, are nonetheless crying foul.
Image source: Getty Images.
Source: Fool.com
Constellation Brands Inc. Stock
With 32 Buy predictions and not a single Sell prediction Constellation Brands Inc. is an absolute favorite of our community.
With a target price of 278 € there is a positive potential of 20.87% for Constellation Brands Inc. compared to the current price of 230.0 €.
