Constellation Brands has found a willing buyer for the Svedka vodka brand in Sazerac Co.
Eighteen months on from Brown-Forman’s divestment of the Finlandia brand to Coca-Cola HBC, Constellation, which bought Svedka for US$384m in 2007, has also prepared its exit from the vodka category today. Sazerac will pay an undisclosed fee for the vodka when the transaction completes “in the coming months”.
The sale will reduce the size of Constellation’s presence in spirits to the Casa Noble and Mi Campo tequilas and American whiskies from High West Distillery and Nelson’s Green Brier.
“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, focusing on higher end wine and spirits brands and products,” the group said. “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.”
Sazerac CEO Jake Wenz added: “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 flavour innovation. We are … excited to add Svedka to our global spirits portfolio featuring their award-winning vodkas, seltzers, and gins.”
Svedka joins Irish whiskey Paddy on Sazerac’s books after the privately-owned business acquired the brand from Pernod Ricard in 2016. Six years later, the Buffalo Trace owner bought the Lough Gill distillery in the north-west of Ireland, with a view to making the facility the “homeplace” for both Paddy and its Michael Collins Irish whiskey brand.
