Constellation Brands Divests Svedka to Sazerac

By Tamara Parker • Tuesday, December 03 15:20 • Permanent Link

Constellation Brands (NYSE: STZ) has announced its decision to divest the Svedka brand to global spirits company Sazerac, as part of its strategic efforts to reshape its wine and spirits portfolio towards higher-end brands. Over the past few years, Constellation has been focused on divesting popular and mainstream wine and spirits brands within its portfolio, and this transaction is in line with its goal to compete predominantly in premium and fine wine and craft spirits segments.

The company's President and CEO, Bill Newlands, stated that the actions taken to reshape the wine and spirits portfolio support efforts to accelerate the performance of that business. This divestiture is seen as another step forward in optimizing the wine and spirits portfolio to meet growth objectives.

Sazerac's CEO, Jake Wenz, expressed excitement about adding Svedka to their global spirits portfolio, highlighting Svedka's high-quality vodka-making traditions, premium liquid standards, and flavor innovation.

The transaction is expected to close in the coming months and is subject to customary closing conditions, including regulatory approvals.

Constellation Brands, known for its high-end, iconic imported beer brands like Corona, Modelo, and Pacifico, as well as fine wine and craft spirits brands including The Prisoner Wine Company, Robert Mondavi Winery, and Casa Noble Tequila, is focused on building brands that people love.

Sazerac, with over 400 years of history, is one of the world’s largest distilled spirits companies, boasting a portfolio of over 500 extraordinary brands including Buffalo Trace Bourbon, Fireball Cinnamon Whisky, and Southern Comfort.

The press release also mentions that additional commentary related to this transaction will be provided at the 2024 Morgan Stanley Global Consumer and Retail Conference on December 3, 2024, during a fireside chat with Garth Hankinson, Executive Vice President, and Chief Financial Officer of Constellation Brands. Today the company's shares have moved -0.3% to a price of $237.15. For more information, read the company's full 8-K submission here.

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