The merger, which will give Kona Brewing's owners a stake in Craft Brewers, comes after a nine-year marketing partnership between the two firms.
"We are thrilled to welcome Kona Brewing fully into the Craft Brewers Alliance family," said Craft Brewers CEO Terry Michaelson.
Craft Brewers operates the Widmer Brothers brewery in Portland, Ore., and Redhook breweries in Woodinville, Wash., and Portsmouth, N.H.
"We're excited about unlocking the full potential of Kona's unique brews," said Kona Brewing CEO Mattson Davis, who remains CEO of the Kona operation.
Kona Brewing Co. has grown into Hawaii's largest brewery, with three restaurant sites in Hawaii and beer distribution reaching 28 states and Japan.