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New Belgium Brewing has agreed to acquire Constellation Brands’ 259,000-square-foot brewing facility in Daleville, Virginia. The acquisition will expand New Belgium’s existing production capacity to help meet the growing demand for its craft beer portfolio. Upon completion of the deal, New Belgium will begin brewing at Daleville, focusing on Voodoo Ranger Juice Force IPA and Fruit Force IPA. New Belgium CEO, Steve Fechheimer, commented: “For a company growing as fast as New Belgium, there’s no challenge more urgent than boosting our ability to make enough beer to meet growing demand”. He continued: “We’re excited to join the Daleville community, and we’re confident this facility and its local team will help us fuel our growth for the foreseeable future. We greatly appreciate the partnership we’ve seen from distributors and retailers over the past several months as we’ve worked to find a solution.” New Belgium and Constellation Brands will also enter into a co-packing agreement as part of the deal. New Belgium will manufacture select brands for Constellation at the Daleville facility, including the newly launched Fresca Mixed. Jim Sabia, president of Constellation Brands’ beer division, said: “One of the keys to our success is bringing a focused and disciplined approach to our beer business, making key strategic pivots when the circumstances warrant it”. He added: “We are pleased that New Belgium Brewing will be able to more fully optimise the Daleville facility’s footprint and are confident they will position the existing talented workforce for additional future success”. The agreement also includes continued employment for all current New Belgium staff. The deal is expected to close in early May.