Consumption of alcoholic drinks has been largely static in recent years whereas the use of cannabis is growing and will continue to expand, offering a commercial opportunity for the alcohol industry in North America, according to Euromonitor analysts.
Investment will help Constellation ‘stay ahead of evolving consumer trends’
Diageo’s recent announcement of a record $1bn deal to takeover Casamigos, the fastest growing super-premium tequila brand in the US (and co-founded by George Clooney), is just the latest indicator of intensified M&A activity in the liquor segment.
Constellation Brands ended its first quarter with net sales of $1.9bn, a 15% year-over-year increase, driven by the company’s acquisitions of premium brands coupled with consumer demand for high-end alcohol products.
Constellation Brands has announced it will acquire The Prisoner Wine Company brands, a portfolio of five super luxury wine brands, while the company emphasizes the continued growth of premiumization and craft.
Constellation Brands made headlines last year when it purchased craft brewer Ballast Point Brewing for $1bn. The focus this year will be on expanding distribution of the craft brews nationwide, while an east coast brewery is also on the cards.
This week Coca-Cola Hellenic Bottling Company released its first quarter trading update, while Constellation Brands takes on a former US army captain as its chief marketing officer for wine and spirits. Meanwhile, Pepsi is ushering in its latest challenge…...