Constellation Brands Sells Svedka Vodka to Sazerac Amid Declining Sales

Constellation Brands announced on Tuesday that it is selling its Svedka vodka brand to Sazerac for an undisclosed sum.

The spirits supplier cited its reasoning for the sale to shift its strategy for its spirits portfolio to focus more on premium 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,” Constellation Brands President and CEO Bill Newlands said in a statement. “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.”

Constellation owns brands like Casa Noble Tequila and High West. Svedka is one of the more affordably-priced spirits within the brand’s portfolio, and the decision to make the sale aligns with Constellation’s directive.

The transaction is forecasted to close within the next few months. CEO of Sazerac Jake Wenz expressed his enthusiasm for the Svedka purchase.

“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 innovation. 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 sale comes after Constellation reported year-over-year 12% and 13% drops in net sales and operating income, respectively, for the wines and spirits segment in its latest earnings call in October.

Previous Purchases by Sazerac in 2024

Though Constellation seems to be streamlining its portfolio, Sazerac appears to be doing quite the opposite.

In March, Sazerac acquired the ready-to-drink trailblazer BuzzBallz. BuzzBallz are spherically shaped ready-to-drink cocktails that have an ABV of 15%. The round RTD brand has a diverse portfolio with many flavors which include Lotta Colada, Horchata, Choc Tease and Pineapple Jalapeño.