Constellation Brands has reached an agreement with spirits giant Sazerac to offload its Svedka Vodka brand, the company announced today.
The sale, which is expected to close “in the coming months,” is part of Constellation’s plan to premiumize its wine and spirits business, which have not kept pace with the gains its beer portfolio of Mexican imports has delivered.
“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 press release. “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.”
In the 52-week period through November 2 (L52W), Svedka’s dollar sales and volume have declined -6.2% and -5.9%, respectively, at off-premise retailers tracked by NIQ, according to data shared by 3 Tier Beverages.
Svedka is the No. 7 vodka brand in the L52W, but it dropped to No. 8 in the L4W, as it was overtaken by Absolut. Svedka’s trends have softened slightly in the L4W, with dollar sales down -5.2% and volume down -3.6%, according to NIQ data from 3 Tier Beverages.
The vodka segment is dominated by leader Tito’s Vodka, which has recorded dollar sales nearly six times greater than Svedka’s in the L52W.
Constellation acquired Svekda in 2007, nearly a decade after its 1998 launch of the Swedish import. At the time, the brand was the fastest-growing premium vodka import in the U.S., according to a press release.
As the hard seltzer segment heated up in 2018, Constellation launched a Svedka-branded version of the bubbly cane sugar drink, but discontinued it in August 2019 as it prepared to launch Corona Hard Seltzer.
Sazerac, which is the second largest spirits supplier in off-premise channels tracked by market research firm Circana, is no stranger to taking in challenged brands and stewarding them to health.
Last month at Beer Marketer’s Insights’ annual fall conference, Sazerac CEO Jake Wenz described how the company acquired a then-struggling Fireball Whisky (before it took on its current name) as part of a deal to acquire Dr. McGillicuddy’s from Seagram’s in the 1980s. Many years later, Sazerac’s patience and persistence with Fireball paid off and it is now a top-five spirits brand.
Privately owned Sazerac’s portfolio includes more than 500 spirits, wine and beer brands, including Buffalo Trace bourbon and BuzzBallz ready-to-drink (RTD) malt-, wine- and spirits-based cocktails, which the company acquired last year.
“The team at Constellation has built the Svedka brand over the years to be known for its high-quality vodka-making traditions, premium liquid standards, and flavor innovation,” Wenz said in the release. “We are honored for this opportunity and excited to add Svedka to our global spirits portfolio featuring their award-winning vodkas, seltzers, and gins.”
Constellation’s wine and spirits division recorded a -9.8% decline in shipments (sales to wholesalers) during the second quarter of the company’s 2025 fiscal year. In the Q2 earnings release, the company forecasted wine and spirits net sales declines of -4% to -6%.