More hard seltzer is in the stars for Constellation Brands Inc. (NYSE: STZ).  The company’s Daleville, VA brewing facility will take center stage for the expansion.

Daleville Obtained via Ballast Point Acquisition

Constellation bought San Diego-based Ballast Point for $1 billion in 2015, only to sell it to the small, Illinois-based Kings & Convicts Brewing in 2019 for a fraction of the price. Yet Constellation retained the Daleville VA Ballast Point facility, which it is now using to expand its “Discovery Brands” portfolio, including hard seltzer.

The Virginia-based facility opened in 2017 and cost $48 million to complete.  It was a strategic part of Ballast Point’s planned east coast expansion, and included 100- and 300-barrel systems.  The taproom and restaurant closed in September, 2019.

The site specializes in hard seltzer and specialty spiked beverages. For the country’s third largest beer company, which owns Corona, Modelo, and Pacifico, among others, retention of the brewing facility signifies a larger commitment to expanding its non-beer offerings.

Two Lane Hard Seltzer Produced in Daleville

The Daleville facility has thus far produced one deliciously unique partnership; they teamed up with country star Luke Bryan to bring his Two Lane lager and hard seltzers to life.

Unfortunately Two Lane is currently on a brief break, as Bryan confirmed on social media in September. Due to the on-going COVID-19 pandemic, Bryan and Constellation made the difficult decision to temporarily pause production.

“We know you love Two Lane Lager (almost as much as we love making it), which is why I’m so sorry to say we had to pause production due to COVID-19.” Bryan explained. “This was a difficult decision, but don’t worry, we’ll be back in March. Bigger and better than ever. Love y’all and appreciate your continued support.” Bryan hopes that production will return in March after a six month recess.

Two Lane Hard Seltzer, a companion to the American Gold Lager, was initially introduced in four flavors: Blueberry Lemonade, Cherry Limeade, Peach Tea, and Watermelon Punch. Each can contains 110 calories, 4.5 percent ABV, and Luke Bryan’s signature of approval. Perhaps when Two Lane relaunches, it will include a “One Margarita” flavor, inspired by Bryan’s song.

The seltzer is brewed with water from the Blue Ridge Mountains, which border the Daleville production center.

“Tucked away in the Blue Ridge Mountains of Western Virginia, our water comes from Carvin’s Cove, a reservoir fed by rainfall that drains from the surrounding watershed within a 12,700 acre natural reserve. This oasis supplies crisp, clean drinking water for people miles around, and is a key ingredient in each can of Two Lane,” the brand boasts on its website.

“We’re thrilled to introduce Two Lane Lager to fans in collaboration with Luke Bryan. As a self-proclaimed ‘beer expert,’ he’s the perfect complement to our expert brewers. Two Lane Lager is a natural extension of our high-end portfolio, offering a clean and crisp taste that transports you to a place where good friends and good times are waiting, and the beer is always cold,” Constellation’s John Alvarado, senior vice president of brand marketing for beer, said last February when the collaboration was first announced.

Constellation’s Growing Hard Seltzer Portfolio

Other notable spiked and sparkling stars in the Constellation universe include Corona Hard Seltzer and Corona Refresca. The new Corona Hard Seltzer is currently available in four flavors: Blackberry Lime, Cherry, Mango, and Tropical Lime.

Corona Refresca, more of a traditional malt-based RTD, comes in three varieties: Coconut Lime, Guava Lime, and Passionfruit Lime. The flavors are a nod to the fact that Corona cerveza is, of course, traditionally served with a lime wedge.

Constellation’s Funky Buddha also released a hard seltzer in 2020. The Florida-based brewery turned to local tropical flavors for its first spiked and sparkling release: Crisp Pink Grapefruit, Juicy Blood Orange, Lush Key Lime Cherry, and Tropical Mango Guava.

“When we were making a seltzer, we knew we had to make it funky the way we know how using flavorful quality ingredients, and we had fun creating flavor combinations that went bolder than any other seltzer brand in the market,” said Ryan Sentz, co-founder and director of brewing operations.

“The flavor profiles of each seltzer resulted in a cooler refreshing experience that we think will appeal to our loyal funky fans and new drinkers once they take their first sip.”

Currently available in the state of Florida, here’s hoping Constellation expands the enlightenment of Funky Buddha and brings it to the rest of the country.

On Tap in Daleville

We are excited to see what other discoveries come out of the former Ballast Point production facility. The drinks market has certainly changed since Constellation first purchased the craft brewery for a cool billion in 2015, leading the company to later admit that they overpaid for the brand.

“Trends in the U.S. craft beer segment have shifted dramatically since our acquisition of Ballast Point,” Constellation Brands president and CEO Bill Newlands said via the press release initially launching the sale to Kings & Convicts, which seems like a bit of an understatement given that White Claw launched only a year later, completely reshaping the global alcohol landscape.

Craft beer sales continue to shrink while hard seltzer and other ready-to-drink (RTD) canned cocktails are exploding in popularity. Constellation is smart to give energy to developing beer alternatives, including Corona Hard Seltzer, Funky Buddha, and Luke Bryan’s Two Lane Hard Seltzer.

Erin Grafton
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