Constellation Brands purchases stake in US rum distiller
Drinks giant Constellation Brands, the company behind market leading cerveza lagers like Corona and Modelo, has acquired a minority stake in Colorado-based rum maker Montanya Distillers. Constellation made this investment under its Focus on Female Founders campaign, which was unveiled in December 2018 to help cement women’s role in the drinks industry. Previous investments made under the scheme include Austin Cocktails and Vivify Beverages. Constellation says that it will commit “at least” $100 million to investing in start-up beverage companies led by women by 2028.
Constellation Brands’ share price has appreciated by 25% so far this year
Source: Yahoo Finance
Montanya was founded eleven years ago by Karen Hoskins and her husband Bryce. Its focus is craft rums, playing into Constellation’s strategy for premiumisation and sitting within its spirits portfolio. According to a press release, the company’s products include: “Platino; a barrel-aged rum made from sugar cane that has been filtered to remove its colour; Oro, a rum that has been aged in ex-whiskey barrels for two to five years; and Exclusiva, a limited- edition rum that has been aged in both ex-whisky and ex-wine casks.”
The move comes after Constellation has inked a deal with E&J Gallo to sell 30 of its lower-priced wine brands. Montanya, which is far from “lower-priced” distributes its rums in 40 states and seven countries, and also has an online shop.
In a social media statement, the distillery commented: “Women have historically only received about 2% of corporate venture funding in the business world, so we’re grateful Constellation saw this gap and stepped up to invest in women-led companies. This investment goes straight into Montanya Distillers to help us reach our long-time goals of improving distribution, expanding production, and continuing our many social and environmental commitments.”
Dominion holds Constellation Brands in its Global Trends Luxury Fund.
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