Constellation Brands announced today an agreement to divest its Svedka brand to Sazerac.
This transaction is expected to close in the coming months.
The decision builds on the company’s strategic efforts to further align the wine and spirits portfolio with evolving consumer preferences and growing market sectors, the company says in a press release, focusing on higher-end wine and spirits brands and products.
“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,” says Bill Newlands, president and CEO, Constellation Brands. “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.”
Additional commentary related to this transaction will be provided at the 2024 Morgan Stanley Global Consumer and Retail Conference on Tuesday, December 3, 2024 in New York, NY during a fireside chat with Garth Hankinson, EVP and CFO, Constellation Brands. The presentation is scheduled to begin at 2:15 p.m. ET. A live, listen-only webcast of the presentation will be available on the company’s investor relations website at ir.cbrands.com under the News & Events section. For anyone unable to participate in the webcast, a replay will be available on the company’s investor relations website through the close of business on January 3, 2025.
The transaction is subject to customary closing conditions, including receipt of regulatory approvals.
“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 flavor innovation,” says Jake Wenz, CEO of Sazerac. “We are honored for this opportunity and excited to add SVEDKA to our global spirits portfolio featuring their award-winning vodkas, seltzers and gins.”
