Constellation Brands acquires spirits RTD brand SpikedAde
Article excerpt
Constellation Brands has bought US RTD brand SpikedAde in a deal that could be worth up to $353m. In a statement yesterday (6 October), the US-based drinks group said it will initially pay $75m for the business. A further $278m is payable over five years, contingent on SpikedAde’s future performance. The gold standard of business intelligence. Find out more Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms. Find out more SpikedAde competes in the emerging “ade” segment, which takes its inspiration from sports drink flavours. The brand pairs those flavours with a vodka base in a zero-sugar, 100-calorie, non-carbonated format. Constellation said the acquisition “strengthens” its position in the RTD category and extends its portfolio into “an emerging, consumer-led demand space”. The company’s existing RTD range contains few brands, including US-based Austin Cocktails, which it acquired in 2022. Earlier this week, functional non-alcoholic drinks producer Hiyo confirmed Constellation had again invested in the California-based business. The maker of Corona Extra beer added that SpikedAde, which has a presence in the eastern US, has shown “strong early momentum through expanding distribution, rapid account growth, and high reorder rates”. Constellation president and CEO Nicholas Fink added: “SpikedAde has...
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The group’s net sales for the three-month period rose 6% year-on-year to $2.63bn on both a reported and comparable basis.
