Constellation Brands, the company that makes Corona Extra and Modelo Especial, announced on Monday that it is paying $1 billion for brewery Ballast Point Brewing & Spirits.
Constellation is paying for Ballast Point’s growth potential. The company currently sells more than 4 million cases of beer per year. It doubled its sales in 2015.
Net sales are forecast to hit $115 million at the company.
The Brewers Association, an industry trade group, said that craft beer sales grew by nearly 18% last year.
In 2008, there were 8.5 million barrels of craft beer products. By 2014 that number skyrocketed to 22 million barrels.
There has been a race to capture more of the craft brew market. AB InBev acquired Seattle’s Elsyian Brewing in January and Oregon’s 10 Barrel Brewing and Chicago-based Goose Island in 2014. SABMiller announced it was buying London’s Meantime Brewing Co., a leading U.K. craft beer.
In the meantime AB InBev announced it would acquire SABMiller for $104 billion, a deal that was formalized last week.