Constellation To Sell Svedka Vodka Brand to Sazerac
December 3, 2024Constellation Brands has agreed to sell its Svedka vodka brand to Sazerac in an effort to push its wine and spirits portfolio toward the higher end of the market and get the troubled wine and spirits division back on track. Financial terms were not disclosed, and Constellation said the deal is expected to close within the next few months.
Svedka, the 12th largest spirits brand in the U.S. last year, has faced headwinds since 2020 when the brand was at 4.73 million cases. By last year, the Swedish vodka had fallen to 3.68 million cases. In control states through October 2024, Svedka is down 4.8%, though it remains the fourth largest vodka in the U.S.
“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,” said Bill Newlands, Constellation’s president and CEO.
The sale follows a difficult second fiscal quarter for Constellation’s wine and spirits division. While the company’s overall sales were up 3% to $2.9 billion, propelled by a 6% increase for its beer unit, the wine and spirits division saw shipments for the quarter fall 10% to 5.5 million cases, with depletions faring worse at -18%. “This transaction is another step forward in seeking to ensure that our wine and spirits portfolio is optimized to succeed and to meet our growth objectives,” said Newlands.
For Sazerac, this is another major acquisition for 2024, following its acquisition of Buzzballz, and it will further bolster’s the company’s position as a leader among affordably priced brands, placing Svedka alongside other leading budget vodkas like Platinum 7X and Barton.
Svedka was originally acquired by Constellation brands in 2007, when it was just above 1 million cases in the U.S. At the time, Svedka was one of the fastest growing imported vodkas, with Constellation noting at the time that the brand had grown by roughly 60% in 2006 in the U.S.—Shane English
Tagged : Constellation Brands, Sazerac, Svedka
