On Tuesday, Constellation Manufacturers introduced its intention to promote Svedka Vodka to New Orleans spirits firm Sazerac. Constellation acquired the Swedish vodka model in 2007 when it bought Spirits Marque One LLC for $384 million from Guillaume Cuvelier and Belgium-based ethanol firm Alcofinance S.A. The choice to divest from Svedka builds on Constellation’s elevated efforts to give attention to high-end wine and spirits manufacturers, as bulk wine continues to battle and a new era of drinkers seeks premium merchandise.
Although the New York-based conglomerate has had huge success with beer manufacturers like Corona, Constellation has struggled in its wine and spirits section — within the second quarter of fiscal yr 2025, the corporate noticed wine and spirits web gross sales fall by 12 %. In keeping with a press launch, the corporate hopes that shifting focus to higher-end manufacturers will enhance the its progress. The Sazerac deal comes on the heels of a number of related transactions, as Constellation has offloaded the vast majority of its extra mainstream wine and spirits manufacturers.
“The actions we’ve taken over the previous a number of years to reshape our wine and spirits portfolio help our efforts to speed up the efficiency of that enterprise,” Invoice Newlands, president and CEO of Constellation Manufacturers stated within the launch. “This transaction is one other step ahead in in search of to make sure that our wine and spirits portfolio is optimized to succeed and to satisfy our progress targets.”
Alternatively, Sazerac hasn’t shied away from investing in its extra mass-market manufacturers, including Svedka to a portfolio that already contains Southern Consolation and Fireball. The Sazerac lineup additionally famously accommodates super-premium, elusive whiskeys like Pappy Van Winkle, W.L. Weller, and Blanton’s.
“The crew at Constellation has constructed the Svedka model through the years to be recognized for its high-quality vodka-making traditions, premium liquid requirements, and taste innovation,” Jake Wenz, CEO of Sazerac acknowledged within the launch. “We’re honored for this chance and excited so as to add Svedka to our world spirits portfolio that includes their award-winning vodkas, seltzers, and gins.”
The phrases of the deal weren’t disclosed, and the transaction is predicted to shut within the coming months.
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