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.
