A Calculated Step in a Booming Category (Image Credits: Pexels)
Consumer preferences for moderation and functional beverages continue to reshape the beverage industry. Constellation Brands, a powerhouse in beer, wine, and spirits, announced an agreement last week to acquire the remaining stake in HOPWTR, a popular non-alcoholic sparkling hop water brand. This move builds on the company’s initial investment from 2021 and targets the rapidly expanding no-alcohol segment.[1]
A Calculated Step in a Booming Category
The non-alcoholic beer segment posted impressive gains last year, with dollar sales climbing 22% according to Circana data.[1] Constellation Brands first backed HOPWTR through its venture capital arm five years ago. Company leaders have collaborated closely with the brand’s team ever since to refine its strategy. The latest deal, revealed on March 27, positions HOPWTR for broader reach under Constellation’s established distribution network.
Transaction terms remain undisclosed, but the agreement awaits standard closing conditions. Executives anticipate completion in early April. This acquisition complements Constellation’s existing moderation offerings and signals confidence in hop water’s potential as a beer alternative.
Unpacking HOPWTR’s Appeal
HOPWTR emerged in 2020 from founders Jordan Bass and Nick Taranto in Los Angeles. The product stands out as a zero-calorie, zero-sugar, zero-carb sparkling water infused with hops for flavor and adaptogens plus nootropics for functional benefits. Ingredients like ashwagandha and L-theanine aim to support stress relief and focus, appealing to health-conscious drinkers.
Available nationwide in major retailers, grocers, and specialty outlets, HOPWTR offers variety to suit different tastes. Popular flavors include:
- Raspberry Iced Tea, blending tart berry notes with smooth tea.
- Centennial Citrus, delivering bright, zesty refreshment.
- Iced Tea & Lemonade, a classic twist with hop undertones.
- Classic varieties for purists seeking pure hop essence.
Gluten-free and non-alcoholic by design, it caters to those embracing “sober-curious” habits without sacrificing taste.
Capitalizing on Market Momentum
Hop water represents more than a trend; it fills a niche for flavorful, alcohol-free options that mimic beer’s profile. Industry observers note its role in “zebra-striping” behaviors, where consumers alternate alcoholic and non-alcoholic drinks. Constellation’s bet underscores hop water’s compatibility with beer production infrastructure, easing scalability.
The broader non-alcoholic beverage market shows robust trajectory. Projections point to continued double-digit growth driven by wellness priorities. Constellation’s portfolio already features standouts like Corona Non-Alcoholic and Modelo Chelada Limón y Sal Non-Alcoholic. Adding HOPWTR diversifies beyond traditional non-alc beers into functional waters.
| Brand | Type | Key Feature |
|---|---|---|
| Corona Non-Alcoholic | Beer | Classic lager taste |
| Modelo Chelada Limón y Sal Non-Alcoholic | Beer | Michelada-inspired |
| Kim Crawford Illuminate | Wine | Low-cal alternative |
| HOPWTR | Hop Water | Adaptogens & nootropics |
Insights from Industry Leaders
Jordan Bass, HOPWTR’s founder and CEO, expressed enthusiasm for the partnership. “My team and I look forward to taking this next step with Constellation and benefiting further from the company’s deep industry expertise and commitment to driving premium, consumer-driven brands,” he stated. Bass added confidence in sustaining growth momentum.[1]
Jim Sabia, president of Constellation’s Beer Division, highlighted the strategic fit. “Since our initial venture investment in HOPWTR in 2021, we’ve worked closely with the team to help shape the brand’s long-term strategic direction,” Sabia said. He emphasized the non-alcoholic area’s rapid rise within beverage alcohol.[1]
Key Takeaways
- Non-alcoholic segment grew 22% in dollar sales during 2025.[1]
- HOPWTR brings functional hops, adaptogens, and zero calories to Constellation’s lineup.
- Deal expected to close soon, integrating the HOPWTR team into Constellation operations.
As beverage giants pivot toward mindful consumption, Constellation Brands’ pursuit of HOPWTR exemplifies proactive adaptation. This acquisition not only fortifies its non-alcoholic arsenal but also taps into the functional drink surge. What do you think about hop water’s place in the sober-curious movement? Tell us in the comments.
