Constellation Brands Agrees to Divest SVEDKA; Continues the Reshaping of Wine & Spirits Portfolio Towards the Higher End
Constellation Brands (NYSE: STZ) has announced an agreement to sell its SVEDKA brand to global spirits company Sazerac as part of its strategic portfolio restructuring. The transaction, expected to close in the coming months, aligns with Constellation's strategy to focus on premium and fine wine and craft spirits segments. This move follows the company's recent divestments of popular and mainstream wine and spirits brands, aiming to optimize their portfolio and accelerate business performance in higher-end market sectors.
Constellation Brands (NYSE: STZ) ha annunciato un accordo per vendere il suo marchio SVEDKA alla compagnia globale di alcolici Sazerac come parte della ristrutturazione strategica del proprio portafoglio. La transazione, che dovrebbe concludersi nei prossimi mesi, si allinea con la strategia di Constellation di concentrarsi sui segmenti di vini pregiati e fine e di alcolici artigianali. Questa mossa segue le recenti dismissioni dell'azienda di marchi di vino e alcolici popolari e di massa, mirano a ottimizzare il loro portafoglio e accelerare le prestazioni aziendali nei settori di mercato pi霉 esclusivi.
Constellation Brands (NYSE: STZ) ha anunciado un acuerdo para vender su marca SVEDKA a la compa帽铆a global de licores Sazerac como parte de la reestructuraci贸n estrat茅gica de su portafolio. Se espera que la transacci贸n se cierre en los pr贸ximos meses y se alinea con la estrategia de Constellation de centrarse en los segmentos de vinos premium y finos y licores artesanales. Este movimiento sigue a las recientes desinversiones de la compa帽铆a de marcas populares y convencionales de vino y licores, con el objetivo de optimizar su portafolio y acelerar el rendimiento empresarial en sectores de mercado m谩s exclusivos.
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Constellation Brands (NYSE: STZ) a annonc茅 un accord pour vendre sa marque SVEDKA 脿 la soci茅t茅 mondiale de spiritueux Sazerac dans le cadre de la restructuration strat茅gique de son portefeuille. La transaction, qui devrait se conclure dans les mois 脿 venir, s'aligne sur la strat茅gie de Constellation de se concentrer sur les segments des vins premium et fins ainsi que des spiritueux artisanaux. Ce choix fait suite aux r茅cents d茅sinvestissements de l'entreprise concernant des marques de vin et de spiritueux populaires et grand public, dans le but d'optimiser leur portefeuille et d'acc茅l茅rer la performance commerciale dans des secteurs de march茅 plus haut de gamme.
Constellation Brands (NYSE: STZ) hat eine Vereinbarung angek眉ndigt, die SVEDKA-Marke an das globale Spirituosenunternehmen Sazerac zu verkaufen, im Rahmen einer strategischen Umstrukturierung seines Portfolios. Die Transaktion, die in den n盲chsten Monaten abgeschlossen werden soll, passt zur Strategie von Constellation, sich auf die Segmente f眉r Premium- und edle Weine sowie Craft-Spirituosen zu konzentrieren. Dieser Schritt folgt auf die j眉ngsten Ver盲u脽ern des Unternehmens von beliebten und g盲ngigen Wein- und Spirituosenmarken, mit dem Ziel, das Portfolio zu optimieren und die Gesch盲ftsentwicklung in h枚heren Marktsektoren zu beschleunigen.
- Strategic portfolio optimization focusing on higher-margin premium segments
- Continued execution of business transformation strategy
- Divestiture of a major brand from portfolio
- Potential short-term revenue impact from brand sale
Insights
This strategic divestiture of SVEDKA represents a significant shift in Constellation Brands' portfolio strategy, focusing on premium and fine wine segments. The move aligns with broader industry trends where premium spirits have shown stronger growth margins compared to mainstream brands. While financial terms weren't disclosed, SVEDKA has been a significant revenue contributor in their spirits portfolio.
The transaction marks a continuation of Constellation's multi-year portfolio optimization strategy. By divesting mainstream brands, the company aims to improve its operating margins and return on invested capital. The higher-end focus should theoretically lead to better profit margins, though it may result in lower absolute revenue in the short term.
The timing of this divestiture to Sazerac, a major spirits company, suggests a seller's market for established alcohol brands, potentially indicating favorable deal terms for Constellation. Investors should monitor the company's premium portfolio performance to evaluate if this strategic shift delivers the promised growth acceleration.
ROCHESTER, N.Y., Dec. 03, 2024 (GLOBE NEWSWIRE) -- Constellation Brands (NYSE: STZ), a leading beverage alcohol company, today announced that it has reached an agreement with global spirits company Sazerac, to divest its SVEDKA brand. This transaction is expected to close in the coming months.
The decision builds on the company鈥檚 strategic efforts to further align the wine and spirits portfolio with evolving consumer preferences and growing market sectors, focusing on higher end wine and spirits brands and products. Over the last few years, Constellation has divested the majority of its popular and mainstream wine and spirits brands within the portfolio and is focused on competing predominantly in premium and fine wine and craft spirits segments.
鈥淭he 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,鈥� said Bill Newlands, President and Chief Executive Officer, Constellation Brands. 鈥淭his 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.鈥�
Jake Wenz, CEO of Sazerac said: 鈥淭he 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. We are honored for this opportunity and excited to add SVEDKA to our global spirits portfolio featuring their award-winning vodkas, seltzers, and gins.鈥�
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, Executive Vice President and Chief Financial Officer, 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鈥檚 investor relations website at under the section. For anyone unable to participate in the webcast, a replay will be available on the company鈥檚 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.
ABOUT CONSTELLATION BRANDS
Constellation Brands (NYSE: STZ) is a leading international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Our mission is to build brands that people love because we believe elevating human connections is Worth Reaching For. It鈥檚 worth our dedication, hard work, and calculated risks to anticipate market trends and deliver more for our consumers, shareholders, employees, and industry. This dedication is what has driven us to become one of the fastest-growing, large CPG companies in the U.S. at retail, and it drives our pursuit to deliver what鈥檚 next.
Every day, people reach for our high-end, iconic imported beer brands such as those in the Corona brand family like the flagship Corona Extra, Modelo Especial and the flavorful lineup of Modelo Cheladas, Pacifico, and Victoria; our fine wine and craft spirits brands including The Prisoner Wine Company, Robert Mondavi Winery, Casa Noble Tequila, and High West Whiskey; and our premium wine brands such as Kim Crawford and Meiomi.
As an agriculture-based company, we have a long history of operating sustainably and responsibly. Our ESG strategy is embedded into our business and our work focuses on serving as good stewards of the environment, enhancing social equity within our industry and communities, and promoting responsible beverage alcohol consumption. These commitments ground our aspirations beyond driving the bottom line as we work to create a future that is truly Worth Reaching For.
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ABOUT SAZERAC
With over 400 years of history, Sazerac is one of the world鈥檚 largest distilled spirits companies. Now in the fourth generation of the current family ownership, Sazerac strives each day to bring the finest spirits to consumers and communities around the world.
Over 500 of the world鈥檚 most extraordinary brands are part of the Sazerac portfolio, including Buffalo Trace Bourbon, Eagle Rare, Weller, The Last Drop Distillers, Fireball Cinnamon Whisky, Southern Comfort, Wheatley Vodka, Meyers鈥檚 Rum, White X Cognac, Sazerac de Forge Cognac, Paddy鈥檚 Irish Whiskey, and many more.
Sazerac is also the steward of many fine distilleries internationally, including Buffalo Trace Distillery in Kentucky, United States; Domaine Sazerac de Segonzac in Cognac, France; Paul John Distillery in Goa, India; and Lough Gill Distillery in County Sligo, Ireland. Additional impressive locations can be found in New Orleans, Montr茅al, London and Sydney, to name a few.
Learn more at: .
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The word 鈥渆xpect鈥� and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These statements may relate to business strategy, future operations, prospects, plans, and objectives of management, including related to the closing of the transaction and the expected timetable, efforts to accelerate the performance of Constellation鈥檚 wine and spirits business, optimization of and growth objectives for Constellation鈥檚 wine and spirits portfolio, the satisfaction of customary closing conditions, including receipt of regulatory approvals, as well as information concerning expected actions of third parties. All forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those set forth in, or implied by, such forward-looking statements. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur.
The forward-looking statements are based on management鈥檚 current expectations and should not be construed in any manner as a guarantee that such results will in fact occur. All forward-looking statements speak only as of the date of this news release and Constellation does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
In addition to risks and uncertainties associated with ordinary business operations, the forward-looking statements contained in this news release are subject to other risks and uncertainties, including the completion of the transaction on the expected terms, conditions, and timetable, regulatory requirements, the accuracy of all projections, and other factors and uncertainties disclosed from time-to-time in Constellation Brands鈥� filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended February 29, 2024 and its Quarterly Report on Form 10-Q for the fiscal quarter ended August 31, 2024, which could cause actual future performance to differ from current expectations.
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FAQ
Why is Constellation Brands (STZ) selling SVEDKA?
Who is buying SVEDKA from Constellation Brands (STZ)?
When will Constellation Brands (STZ) complete the SVEDKA sale?
What is Constellation Brands' (STZ) strategy for its wine and spirits portfolio?
