Svedka sale slashes Constellation wine and spirits by 65%

In the second quarter (Q2) of the financial year, Constellation Brands saw its wine and spirits sales fall to US$136 million following its divestiture of Svedka Vodka.

For the three months ending 31 August 2025, the firm’s wine and spirits net sales plummeted by 65%, from US$388.7m in Q2 2024 to US$136m.

Constellation sold Svedka to Sazerac in January this year for an undisclosed sum. The group also offloaded brandy producer Copper & Kings in August.

The revenue loss was caused by a 76.4% fall in shipment values, relating to its various divestitures and ‘changes in financial and volume-related distributor contractual obligations’.

Excluding the Svedka sale and other wine divestitures, the portfolio’s organic net sales fell by 19%. The slump follows an almost equal decrease in Q1, when revenue fell by 21%.

Spirits net sales were US$23.5m, a 55% decrease on Q2 2024.

The firm reiterated its expectations for the division’s organic net sales to decline by between 17% and 20% for the full year.

For the whole group, which includes Constellation’s beer portfolio, sales fell by 15% to US$2.48 billion.

President and CEO Bill Newlands said: “While we continue to navigate a challenging socioeconomic environment that has dampened consumer demand, our teams remain focused on executing against our strategic objectives, including driving distribution gains, disciplined innovation, and investing behind our brands.

“Against that backdrop, we are pleased to continue to lead the US beer industry in dollar share gains, drive continued outperformance versus the US wine industry in our wine and spirits business, and consistently deliver against our capital allocation priorities.”

Constellation is currently facing a lawsuit in the US, which alleges that the firm misled investors about the growth potential of its wine and spirits portfolio.