Constellation swoops for Swedish vodka
fast-growing Svedka vodka brand for $384m, as the group looks to
improve earnings by delving further into the US spirits market.
Constellation has signed a deal to acquire the premium Swedish vodka from current owners, Guillaume Cuvelier and Alcofinance.
The deal is another example of premium spirits brands helping some of the world's largest drinks firms to improve earnings.
Svedka is one of the fastest growing vodka imports in the US, and increased volume sales by 60 per cent last year to 1.1m cases.
"Svedka's phenomenal success is largely due to the eye-catching and effective marketing and advertising campaigns that reach a key segment of the young adult market," said Richard Sands, Constellation chairman.
Svedka presents itself as a vodka for bright, young things in the city. It has the usual array of partially undressed women on adverts, but has also shown itself in touch with the online generation - doing a deal with MySpace.
Premium spirits brands have increasingly driven growth for major alcoholic drinks firms this year, notably Pernod Ricard and Diageo.
And vodka is the largest US spirits category, having also profited alongside other spirit drinks and wine recently from a consumer shift away from beer.
Constellation, which last month dropped earnings estimates for the year, warned Svedka would not help it to increase earnings per share for the next two financial years, however.
The firm said it planned to invest in better distribution for the brand in the US, and also wanted to expand its presence in other countries.
