Macro Brewers Continue To Buy Craft Brands

Miller Coors continues to add new craft breweries to its portfolio with two new purchases. The joint venture between Molson Coors Brewing Company (NYSE: TAP) and SABMiller (OTC: SBMRY) purchased craft brands Terrapin Beer and Hop Valley Brewing recently. Coors' craft beer division, Tenth and Blake, will manage the new acquisitions.

The company made headlines late last year by purchasing popular craft brand Saint Archer for $35 million, and highlighted its aim to enter the growing craft beer industry. As macro beers growth has slowed considerably, major brands have looked to craft brands to revitalize their portfolios.

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Heineken (OTC: HEINY) acquired a 50 percent stake in Lagunitas last year, while Constellation Brands, Inc. (NYSE: STZ) paid a record $1 billion for wildly popular Ballast Point. Anheuser Busch Inbev SA (ADR) (NYSE: BUD), which famously blasted the craft beer industry in a Super Bowl commercial in 2015, has also added several new craft breweries to its roster.

Craft beer production volume rose 8 percent in the first half of 2016. Look for this trend to continue, with California becoming the hot bed of the craft beer industry.