Maker of Svedka voda and Robert Mondavi wines, Constellation Brands Inc (STZ.N) has announced it will buy Ballast Point Brewing & Spirits in a $1 billion deal in order to compete in the craft beer market.

This deal, which is expected to close towards the end of the year, is expected to add between 5-6 cents per share to Constellation’s earnings at the end of February 2017.

Chief executive of Constellation, Rob Sands, has said;

“Along with imports, craft beer is a key driver of growth and premiumization within the beer industry, with craft doubling its share of the U.S. beer market in the last five years.”

The company is on track to sell over 4 million cases of beer this year, which more than double its sales volume from 2014.

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Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.