Constellation Brands agrees to divest SVEDKA brand

Constellation Brands (STZ) has reached an agreement with global spirits company Sazerac, to divest its SVEDKA brand. This transaction is expected to close in the coming months.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. 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. Additional commentary related to this transaction will be provided at the 2024 Morgan Stanley Global Consumer and Retail Conference on Tuesday, December 3, 2024 in New York, NY during a fireside chat with Garth Hankinson, Executive Vice President and Chief Financial Officer, Constellation Brands. The presentation is scheduled to begin at 2:15 p.m. ET. The transaction is subject to customary closing conditions, including receipt of regulatory approvals.