Constellation Brands announced Tuesday that it has reached an agreement with global spirits company Sazerac to divest its Svedka vodka brand.
Constellation officials said the move is part of a strategic effort to focus on "higher-end" wine and spirits brands and products. The company said it has divested the majority of its popular and mainstream wine and spirits brands over the past few years.
“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 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.”
Sazerac CEO Jake Wenz said in the announcement that Constellation had built Svedka into a brand known for "high-quality vodka-making traditions, premium liquid standards and flavor 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," Wenz said.
Terms of the deal were not disclosed. It is expected to close in the "the coming months," subject to regulatory approval and other closing conditions.
