Constellation Brands has struck a deal to fully own Hop Wtr, the US sparkling-water brand made with hops and adaptogens.
The Modelo brewer first invested in Hop Wtr five years ago and said today (27 March) the brand is “well-positioned” to meet consumer interest in moderation and “betterment”.
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The financial terms of the deal, which is expected to be completed next month, were not disclosed.
Hop Wtr was set up in 2020 by Jordan Bass and Nick Taranto, who wanted to create a calorie-free alternative to beer that also provided ‘functional’ benefits to drinkers.
The drinks are made with a recipe that includes Ashwagandha and L-theanine. Stockists include Sprouts Farmers Market, Target and Wegmans.
Jim Sabia, the president of Constellation’s beer division, said: “With the non-alcoholic segment becoming one of the fastest growing areas of total beverage alcohol, Hop Wtr is a natural addition to our no- and low-alcohol portfolio.”
Constellation cited Circana multi-outlet and convenience data that the company said showed sales of non-alcoholic beer grew 22% in 2025. No further figures were disclosed.
Bass, who will join Constellation, added: “I’m confident [the deal] will help us keep the momentum going and am excited to work together on the next phase of growth.”
Hop water started to take off in the 2010s, with early brands including US-based H2OPS. Heineken-owned Lagunitas released Lagunitas Hop in 2019 but Hop Wtr was one of the first to include functional ingredients. The company says, for example, that L-theanine “support a relaxed, alert state, helping you feel calm and clear-headed without stimulation”.
Hop Wtr’s recent NPD moves have included iced-tea products and, earlier this year, a tie-up with US brewer Stone Brewing to launch a “non-alc, IPA-style, hoppy water”.
Last year, Constellation bought a minority stake in Hiyo, another US business marketing functional non-alcoholic drinks.
Hiyo sells drinks that include ingredients such as ashwagandha, L-theanine, lion’s mane and lemon balm. Earlier this week, the company announced a national contract to sell to Target stores.
Next month, Constellation is set to see new executive in the CEO seat.
Six weeks ago, the Kim Crawford wines group named board director and former Suntory executive Nick Fink as its new CEO.
Fink, who joined the board in 2021, is to take over from Bill Newlands, who will step down on 13 April.
