Constellation Brands acquired Svedka vodka in 2009.
The American vodka is known for its bright branding and bold flavored vodkas such as blue raspberry, cherry limeade, cucumber lime, mango pineapple, strawberry lemonade, raspberry lemonade, citron and peach.
The brand has also branched out into RTDs, such as with Svedka Spiked Seltzer and Svedka Tropics Tea Spritz (which combines vodka, tea and tropical flavors).
But Constellation Brands - the beer, wine and spirits giant which boasts brands such as Corona Extra, Modelo and Kim Crawford – says the brand no longer fits in with its strategy to focus on premium brands in the wine and spirits category.
Action plan for wine and spirits
This wine and spirits division has not performed as well as the booming beer division over the last few years: reporting a 9% decline in net sales 2024.
Constellation Brands has been working on its premiumization strategy for the division over the last few years, divesting the majority of its popular and mainstream wine and spirits brands within the portfolio and focusing on competing predominantly in premium and fine wine and craft spirits segments.
In 2021, it divested most of its mainstream wine portfolio (principally those priced at $11 retail and below), selling the brands to E. & J. Gallo Winery for around $810m. More wine brands (classed as mainstream and premium) were sold to The Wine Group in 2022.
In spirits, it is now focusing on premium products such as High West Whiskey (acquired in 2016) and Casa Noble Tequila (acquired in 2014).
New Orleans-headquartered Sazerac is buying Svedka vodka for an undisclosed sum, highlighting the flavor innovation the brand is known for.
Its spirit portfolio already boasts an extensive range of brands, including Southern Comfort, Fireball, Sazerac Rye, Sazerac de Forge, Buffalo Trace and Wheatley Vodka.
The transaction is subject to customary closing conditions.