Constellation Brands, a beverage alcohol company and the largest wine producer in the world, has acquired Ballast Point Brewing & Spirits Company for $1 billion.

On Monday, Nov. 16, Constellation Brands announced the agreement to acquire Ballast Point, which is one of the fastest growing beer companies in the U.S.

Constellation Brands had focused on spirits and wine for a long time. However, the company became successful in the beer business after 2013 when it received the rights to sell Modelo and Corona beer in the U.S.

Ballast Point is based in San Diego and the company started in 1996. However, Ballast Point has been expanding very rapidly as more and more Americans are shifting to craft brews. The sales volume of Ballast Point is estimated to double this year and net sales expected to reach around $115 million.

Ballast Point's founder Jack White says, that he started the company about two decades ago with the vision of producing great beer, which consumers will love, and to achieve the aim the business needs the right partner.

"The team at Constellation shares our values, entrepreneurial spirit and passion for beer, and has a proven track record of helping successful premium brands reach the next level of growth and scale," says White.

The Brewers Association that represents over 3,000 craft brewers in the U.S., estimates that the craft beer industry in the country will account for about 20 percent of the $100 billion beer market by 2020. Currently, craft beer accounts only around 10 percent of the entire beer market.

"We see the craft category continuing to grow double digits for the foreseeable future and take a significant share of the beer business over the next 10 years," says Rob Sands, the president and CEO of Constellation Brands.

Ballast Point may be well-known in the beverage market for its craft brews but the company also makes some spirits, whiskey, pre-mixed canned cocktails, gin and rum. Ballast Point beer is currently distributed in 30 states and Sands suggests that Constellation Brands will aim to expand to new markets.

The acquisition will be complete by the end of the year.

Photo: Four Brewers | Flickr