Constellation silent over Monster merger rumour
Svedka vodka owner Constellation Brands has refused to comment on claims it is exploring a merger with energy drink maker Monster Beverage Corporation.
A report by Bloomberg on Sunday (21 November) cited unnamed sources who claim the two companies are discussing a potential merger deal with advisors.
When approached by The Spirits Business for a statement, Constellation Brands said it does not comment on rumours or speculation.
US firm Monster Beverage Corporation, which The Coca-Cola Company owns a 19% stake in, has not yet responded to the comment request.
If the alleged deal goes ahead, the move would mark Monster’s entry into the alcohol sector. The company produces energy drink brands such as Monster Energy, Relentless and Burn.
New York-based Constellation Brands is the owner of brands such as Svedka vodka, High West Whiskey, Casa Noble Tequila, Mi Campo Tequila and Tennessee whiskey Nelson’s Green Brier. The company’s biggest business is beer, with brands such as Corona and Modelo.
In recent years, Constellation Brands has made several minority stake acquisitions through its venture capital subsidiary.
In June this year, the US firm acquired a minority stake in Dos Hombres Mezcal, founded by Breaking Bad actors Aaron Paul and Bryan Cranston. April 2021 saw Constellation snap up a minority stake in Mezcal El Silencio.
In September 2020, the Casa Noble owner made its first outright purchase through its venture arm when it acquired Kentucky-based brandy producer Copper & Kings.
The company has also dabbled in CBD drinks, with the firm owning an approximate 39% stake in cannabis player Canopy Growth Corporation. Constellation first invested in Canopy Growth in 2017.