Dive Brief:
- Constellation Brands has agreed to acquire Hopwtr, a nonalcoholic sparkling water brand flavored with hops, for an undisclosed amount.
- The deal gives Constellation remaining interest in the beverage company and full ownership of the nonalcoholic brand. Hopwtr has been part of Constellation's venture portfolio since 2021.
- The addition of Hopwtr expands Constellation’s reach in the nonalcoholic sector. The beer giant has previously focused on nonalcoholic offerings of its signature beer brands, including Modelo and Corona.
Dive Insight:
Although a small portion of the nonalcoholic beer market, hop water has been identified as a potential growth driver within the segment due to its better-for-you attributes, such as zero carbs or calories.
To differentiate itself from others, Hopwtr has adaptogens and nootropics, responding to consumers who are demanding more functional benefits from their beverages. Hopwtr is positioned as both a nonalcoholic and a functional beverage, fitting into multiple consumer trends.
“HOPWTR is well positioned to meet the needs of today’s evolving consumer preferences aligned to moderation and betterment,” Constellation said in a statement.
The brand was launched in 2020 by CEO Jordan Bass and co-founder Nick Taranto, who came up with the idea after seeking healthier alternatives to beer and nonalcoholic beer.
Constellation said Hopwtr’s production and distribution will remain unchanged in the near term. Hopwtr’s CEO Jordan Bass and other team members will join Constellation and “continue to play an important role in shaping the brand’s future,” the company said.
The nonalcoholic segment is one of the fastest-growing categories in beer, with sales increasing by 22% in 2025, according to Circana data cited by Constellation. Hop water generates about $28.5 million in U.S. sales, according to data from NielsenIQ previously shared with Food Dive.
“With the nonalcoholic segment becoming one of the fastest growing areas of total beverage alcohol, HOPWTR is a natural addition to our no- and low-alcohol portfolio," Jim Sabia, president of Constellation’s beer division and executive vice president, said in a statement.
