Constellation Brands has made an alcohol-free play in the US, purchasing a minority holding in the Töst brand.
The Töst portfolio comprises two SKUs, both of which are carbonated and feature white tea as well as ginger, that retail in the US for around US$9 per 75cl bottle. The namesake variant has cranberry notes, while Töst Rosé features elderberry.
The transaction, of an undisclosed size and for an undisclosed sum, forms part of Constellation’s moves to “optimise our higher-end portfolio”. According to the group, Töst is “a ‘never alcohol’ product, meaning there is no alcoholic fermentation at any point in the production process, expanding the opportunity to reach an even wider variety of occasions”.
The multi-category brand owner, which has long relied on its Corona and Modelo Mexican beer business in the US for growth, posted a 5% sales dip in fiscal Q4 – to the end of February – last month. For the full 12 months of fiscal 2023, the top line finished up, however, by 7%.
How to get in front of US beverage alcohol consumers – Market Intel
