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Constellation and SGWS expand US distribution deal

Southern Glazer’s Wine & Spirits will distribute approximately 70% of Constellation Brands’ portfolio in the US from April 2021.

Svedka Infusions
Constellation Brands owns Svedka vodka

The expanded deal – terms of which have not been disclosed – is in line with Constellation’s vision to offer a ‘high-end’ wine and spirits portfolio with ‘exceptional’ consumer experiences. The agreement covers Constellation’s wine and spirits portfolio.

“We are not only fully aligned with Constellation Brands’ strategy to accelerate growth in high-end wine and spirits categories, but also in our efforts to drive greater diversity in the industry,” said Wayne E Chaplin, CEO of Southern Glazer’s Wine & Spirits (SGWS).

“Our like-minded cultures and joint commitment to building brands along with communities positions us to achieve great things in 2021 and beyond.”

The ‘future-focused evolution’ of Constellation’s wine and spirits distributor network in the US aims to boost the firm’s business strategy and drive ‘long-term value creation’ for the market.

Robert Hanson, executive vice-president and president of Constellations Brands’ wine and spirits division, said: “Achieving a consumer-focused route to market is essential to achieving our objective to outpace, outgrow and out execute the category in channels where consumers are choosing to engage.

“Southern Glazer’s is a proven brand builder with a strong national footprint, a digital commerce innovator and a standout leader in the luxury category. We share a future-focused mindset and strategic orientation that we are confident will enable us to drive our consumer-first agenda.”

SGWS is the largest wine and spirits distributor in the US.

Constellation unveiled its wine and spirits business transformation in 2019, which saw the firm ‘evolve’ its portfolio into ‘higher-end, broad-shouldered brands aligned with consumer preferences’.

As part of this vision, Constellation Brands acquired Kentucky-based brandy producer Copper & Kings for an undisclosed sum in September 2020.

Furthermore, Constellation agreed to sell approximately 30 wine and spirits brands to E&J Gallo Winery in April 2019.

Sazerac paid US$255 million to buy Paul Masson Grande Amber Brandy from Constellation Brands earlier this year.

The Svedka vodka owner said its portfolio continues to outpace high-end wine and spirits segments, driven by its ‘Power’ brands (over US$11), including High West whiskey. The firm began its digital transformation last year, and is aiming to become the ‘strongest’ direct-to-consumer and e-commerce business in the category.

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