On Tuesday, Constellation Brands announced its intention to sell Svedka Vodka to New Orleans spirits company Sazerac. Constellation acquired the Swedish vodka brand in 2007 when it purchased Spirits Marque One LLC for $384 million from Guillaume Cuvelier and Belgium-based ethanol company Alcofinance S.A. The decision to divest from Svedka builds on Constellation’s increased efforts to focus on high-end wine and spirits brands, as bulk wine continues to struggle and a new generation of drinkers seeks premium products.
Though the New York-based conglomerate has had massive success with beer brands like Corona, Constellation has struggled in its wine and spirits segment — in the second quarter of fiscal year 2025, the company saw wine and spirits net sales fall by 12 percent. According to a press release, the company hopes that shifting focus to higher-end brands will improve the its growth. The Sazerac deal comes on the heels of several similar transactions, as Constellation has offloaded the majority of its more mainstream wine and spirits brands.
“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,” Bill Newlands, president and CEO of Constellation Brands said in the release. “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.”
On the other hand, Sazerac hasn’t shied away from investing in its more mass-market brands, adding Svedka to a portfolio that already includes Southern Comfort and Fireball. The Sazerac lineup also famously contains super-premium, elusive whiskeys like Pappy Van Winkle, W.L. Weller, and Blanton’s.
“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,” Jake Wenz, CEO of Sazerac stated in the release. “We are honored for this opportunity and excited to add Svedka to our global spirits portfolio featuring their award-winning vodkas, seltzers, and gins.”
The terms of the deal were not disclosed, and the transaction is expected to close in the coming months.
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