Constellation Brands has said the it plans to sell its Svedka vodka brand to New Orleans-based Sazerac, as the Corona beer maker looks to focus on its premium wine and spirits business.
The company did not disclose the terms of the deal.
'Another Step Forward'
“The actions we have taken over the past several years to reshape our wine and spirits portfolio support our efforts to accelerate the performance of that business,” commented Bill Newlands, president and chief executive, Constellation Brands. “This transaction is another step forward in seeking to ensure that our wine and spirits portfolio is optimised to succeed and to meet our growth objectives.”
Constellation acquired Svedka in 2007 when it bought Spirits Marque One LLC for $384 million (€364.7 million) from Guillaume Cuvelier and Belgium-based Alcofinance SA.
Sazerac produces a wide range of spirits, and owns brands including such as Southern Comfort and Fireball.
“The team at Constellation has built the Svedka brand over the years to be known for its high-quality vodka-making traditions, premium liquid standards, and flavour innovation," added Jake Wenz, CEO of Sazerac.
"We are honoured for this opportunity and excited to add Svedka to our global spirits portfolio featuring their award-winning vodkas, seltzers, and gins.”
Wines and Spirits
Despite beating second-quarter sales estimates in early October, buoyed by steady demand for its popular beer brands, Constellation has struggled with its wines and spirits segment including its premium wine brands like Meiomi.
The company recently wrote down the value of its wine and spirits business, taking a $2.5 billion (€2.27 billion) charge.
Industry peers Molson Coors and Brown-Forman have also been struggling with tepid demand for wine and spirits as consumers cut back on non-essential goods.
Additional reporting by ESM
