Constellation Brands Sells Svedka Vodka to Sazerac

(Reuters) – Constellation Brands (NYSE:STZ) announced on Tuesday that it will sell its Svedka vodka brand to New Orleans-based Sazerac, focusing its efforts on premium wine and spirits.

The financial terms of the deal were not disclosed.

Constellation acquired Svedka in 2007 when it purchased Spirits Marque One LLC for $384 million from Guillaume Cuvelier and Belgium-based Alcofinance SA.

Sazerac is known for a diverse range of spirits, including popular brands such as Southern Comfort and Fireball.

Despite surpassing second-quarter sales estimates in early October, thanks to steady demand for its beer brands, Constellation has faced challenges with its wine and spirits segment, including its premium wine brands like Meiomi.

Recently, the company wrote down the value of its wine and spirits division, reporting a $2.5 billion charge. Industry competitors such as Molson Coors (NYSE:TAP) and Brown-Forman also reported difficulties amid declining demand for wine and spirits as consumers reduce spending on non-essential items.