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Constellation Brands to Sell Svedka Vodka to Sazerac, Sharpens Focus on Premium Spirits

Dec 3 (Reuters) - Constellation Brands said on Tuesday it would sell its Svedka vodka to New Orleans-based Sazerac, as the Corona beer maker looks to focus on its premium wine and spirits business.

The company did not disclose the terms of the deal.

Constellation acquired Svedka in 2007 when it bought Spirits Marque One LLC for $384 million from Guillaume Cuvelier and Belgium-based Alcofinance SA.

Sazerac produces a wide range of spirits, and owns brands including such as Southern Comfort and Fireball.

Despite beating second-quarter sales estimates in early October, buoyed by steady demand for its popular beer brands, Constellation has struggled with its wines and spirits segment including its premium wine brands like Meiomi.

The company recently wrote down the value of its wine and spirits business, taking a $2.5 billion charge.

Industry peers Molson Coors and Brown-Forman have also been struggling with tepid demand for wine and spirits as consumers cut back on non-essential goods.

Reporting by Neil J Kanatt in Bengaluru; Editing by Tasim Zahid

Source: Reuters


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